A shift in Europe’s fintech regulatory landscape is prompting renewed attention on Malta as a potential base for Electronic Money Institution (EMI) and Payment Institution (PI) licensing, according to ongoing discussions among industry professionals.

Insights shared by Vykintas Barakauskas, a Director at Epico Finance in Lithuania (a finance and banking solutions consultancy firm), suggest that while jurisdictions such as Lithuania are tightening supervisory standards, Malta is increasingly being viewed as a viable alternative for firms seeking EU market access.

Recent data referenced in the discussion aligns with findings from the European Banking Authority (EBA), which indicate that Malta is diverging from broader European trends. While many EU jurisdictions recorded a decline in EMI and PI licence applications following the post-Brexit surge, Malta registered a 43 per cent increase in applications between 2022 and 2024.

During the same period, Malta received the third-highest number of applications in the EU and granted the highest number of authorisations, totalling 21.

This positions Malta as one of the more active licensing jurisdictions in Europe at a time when the market is maturing and regulatory expectations are becoming more stringent across the bloc.

At the centre of Malta’s offering is the Malta Financial Services Authority (MFSA), the single regulator responsible for licensing and supervising financial services entities, including EMIs. The MFSA operates within an EU-aligned regulatory framework, allowing licensed entities to passport their services across the European Economic Area.

Industry participants in the discussion highlighted Malta’s perceived responsiveness and sector familiarity, particularly in areas such as digital assets, gaming and high-growth fintech models. The jurisdiction’s early adoption of frameworks in emerging sectors, including virtual assets, has contributed to its positioning as a regulator experienced in complex financial activities.

Contributors to the discussion noted that Malta is attracting interest at a time when regulatory approaches across Europe are evolving. Its positioning appears linked to a perception of pragmatism, particularly for firms operating in specialised or higher-risk sectors.

At the same time, the conversation points to a broader shift in how fintech companies and investors approach jurisdiction selection. Rather than prioritising speed to authorisation, firms are increasingly weighing long-term regulatory alignment, operational substance and scalability.

This is also reflected in growing interest in non-EU jurisdictions such as the United Arab Emirates, suggesting that the decision-making process is becoming more global and strategic.

Ultimately, on one hand, data indicates rising demand and regulatory activity in licensing. On the other, increasing scrutiny across Europe suggests that maintaining robust governance and compliance standards remains critical regardless of jurisdiction.