Gemini’s decision to relocate its European headquarters from Ireland to Malta highlights Malta’s regulatory advantages in the cryptocurrency sector, according to legal expert Cherise Abela Grech.

Dr Abela Grech, a Partner responsible for the Corporate, Financial Services and Competition Law practices at GTG Legal, noted that while the implementation of the Markets in Crypto-Assets Regulation (MiCAR) has harmonised the provision of crypto-asset services across the EU, not all Member States were equally prepared for the transition.

“Having enacted a fully-fledged legal regime covering, among other elements, the issue and the provision of services relating to cryptocurrencies back in 2018, Malta has garnered extensive knowledge and experience, in comparison to most other Member States, in licensing, regulating and advising such service providers,” she told WhosWho.mt.

The Maltese Financial Services Authority (MFSA) has actively positioned itself as a regulator of choice for crypto firms, attracting major industry players beyond Gemini. This stands in contrast to Ireland, where the regulatory landscape has been described as less proactive.

Malta’s Virtual Financial Assets (VFA) Act, introduced in 2018, offers a full licensing framework with obligations extending to anti-money laundering and counter-financing of terrorism (AML/CFT), market abuse prevention, and customer protection. In contrast, Ireland’s regime was previously limited to AML registration alone.

With MiCAR taking full effect from 30th December 2024, the MFSA is facilitating a streamlined transition for VFA Service Providers to obtain their Crypto-Asset Service Provider (CASP) licences under the new framework. “Service providers in Malta thus have a distinct advantage as they will be first players in obtaining a CASP licence under MiCAR, allowing them to immediately passport (offer) their services to all EU Member States,” Dr Abela Grech stated. Meanwhile, providers in other Member States, including Ireland, must undertake the full licensing process from scratch before they can offer services across the EU.

Gemini’s move to Malta, despite its continued presence in Ireland, has raised concerns about Ireland’s appeal to blockchain and cryptocurrency firms. Industry body Blockchain Ireland described the relocation as “deeply concerning” for the country’s status as an emerging hub for digital assets.

The Irish Central Bank’s perceived slow adoption of MiCAR, coupled with sceptical remarks from its governor Gabriel Makhlouf – who has previously likened cryptocurrency firms to “Ponzi schemes” – has further contributed to uncertainty in the sector. The bank only recently began recruiting consultants to develop its approach to the new regulations, with expectations of full alignment by late spring or summer 2025.

Image credit: Cherise Abela Grech / gtg.com.mt