Europe Investigates Malta for MiCA Law Violation: Crypto Regulation Under Scrutiny

10 July, 2025, 01:30 PM

The European Securities and Markets Authority (ESMA) has launched an investigation into Malta, alleging violations of the Markets in Crypto-Assets (MiCA) law, the EU's comprehensive regulatory framework for cryptocurrencies. The probe centers around concerns that Malta issued Cryptocurrency Asset Service Provider (CASP) licenses to firms that didn't fully meet the required criteria. According to ESMA's investigation report, "Malta was found to have issued cryptocurrency service provider (CASP) licenses to certain companies even though they did not fully meet the licensing requirements. In particular, it was found that the procedures related to the issuance of these licenses were somewhat inadequate." Media reports suggest the investigation may involve OKX, a major cryptocurrency exchange. However, OKX has declined to comment on the matter. This investigation highlights the growing importance of regulatory compliance in the crypto space and underscores the EU's commitment to enforcing MiCA standards across its member states. The outcome of the investigation could have significant implications for Malta's crypto industry and the broader European crypto market. ```