As Malta cements its role as a regulated hub for crypto business under the EU’s Markets in Crypto-Assets Regulation (MiCA), the Malta Financial Services Authority (MFSA) has wasted no time in setting the tone for compliance.

In a workshop held shortly after the country issued its first MiCA licences, the MFSA brought together licensed and prospective Crypto-Asset Service Providers (CASPs), along with legal and compliance professionals, to outline its supervisory expectations under the new EU framework.

Led by senior officials Sarah Pulis (Head of Conduct Supervision), Pauline Tonna (Deputy Head), and Antonio Battaglino (Assistant Manager), the session focused on practical guidance for firms navigating MiCA’s complex regulatory landscape. Topics ranged from market conduct and internal governance to marketing practices and website disclosures.

Key supervisory expectations discussed included:

• Conflict of interest management: CASPs must go beyond identifying and disclosing conflicts of interest. They are expected to implement practical measures to prevent and manage such conflicts effectively.
• Client best interest and best execution: CASPs are required to prioritise client interests during trade execution. The MFSA stressed that best execution involves a broader assessment – covering price, cost, speed, execution likelihood, and settlement reliability – not just securing the best price.
• Marketing and communication standards: All marketing content must be fair, clear, and not misleading. CASPs must ensure transparency around promotions and incentives, which should be relevant, proportionate, and not of high monetary value.
• Compliance function: The regulator highlighted the need for a permanent, effective, and independent compliance function within CASPs as essential to good governance.
• Website disclosures: The MFSA advised that regulatory and risk disclosures should be clearly visible in the footers of CASP websites. Reference was also made to findings from a recent thematic review of CASP websites, communicated in a “Dear CEO” letter.

A key message from the MFSA was that compliance under MiCA is not just a checkbox exercise – it requires a proactive, client-centric approach.