Malta, a self-declared blockchain island, is one of the few European Union (EU) jurisdictions with a clear regulatory framework for crypto assets and services. A few years ago, the Maltese government decided to formally recognize and regulate cryptocurrency-related businesses in order to promote the development of Malta’s innovative technology sector.

Just like other financial service providers in Malta, cryptocurrency businesses are regulated by the Malta Financial Services Authority (MFSA), which is responsible for protecting the integrity of the financial services industry and maintaining the stability of the financial sector for the benefit and protection of consumers.

Malta Digital Innovation Authority Act

The Maltese Government aims to accelerate Malta’s emergence as a centre of excellence for innovative activities through the implementation of the Malta Digital Innovation Authority Act (MDIA Act) of 15 July 2018. The Act provides for the establishment of the Malta Digital Innovation Authority (MDIA) to support technological innovation in Malta by liaising with relevant national institutions and enforcing regulations on people, digitalisation and innovation.

MDIA's main goals and principles include:

• Promote public policies that are conducive to technological innovation

• Promote the development and use of innovative technologies

• Protecting Malta’s reputation for innovative technology

• Harmonize national regulations with international standards and laws

• Collaborate with other regulators on AML/CFT, data protection and fair competition

• Promoting transparency and control in the use of innovative technologies

Innovative Technology Arrangements and Services Act

The Maltese government has increased its focus on regulating rapidly evolving new technologies through the passage of the Innovative Technological Institutions and Services Act (ITAS Act) on 1 November 2018. The ITAS Act is administered by the MDIA.

The ITAS Act contains the following provisions:

• Registration Principles for Innovative Technology Service Providers

• Code of Conduct (Integrity, Transparency and Knowledge) to Guide Providers of Innovative Technology Services

• Appointment and functions of a resident agent for non-resident applicants in Malta

ITAS law defines innovative technology solutions as software and architecture typically used to design and deliver DLTs, but not necessarily:

• Use a distributed, decentralized, universal and/or replicated ledger

• May be public, private or mixed

• Allowed, Not Allowed, or Mixed

• Provides a high level of protection against retroactive interference with transaction history, making it impossible to replace transaction history

• Encrypted

• Under testing

The ITAS Act defines innovative technology services as follows:

• Review or audit services provided under the innovative technology mechanisms provided for under this Act involving a system auditor

• Technical administrative services provided under the innovative technology mechanism provided for in this Act involving technical administrators

Money Laundering Prevention Act

The AML/CFT principles are reflected in the Law on the Prevention of Money Laundering of September 23, 1994 and the Regulation on the Prevention of Money Laundering and Terrorist Financing of January 1, 2018, and are implemented by the Financial Intelligence Analysis Unit (FIU), which acts as the supervisory authority for relevant innovative technical services. In addition, the FIAU has implementation procedures, which are also legally binding.

In order to monitor compliance with the relevant AML/CFT legislation, GAFI is mandated to collect, process, analyse and disseminate data submitted by regulated businesses.

Virtual Financial Assets Law

The foundation of Malta’s cryptocurrency regulatory framework is the Virtual Financial Assets Act (VFA), enacted on November 1, 2018, which covers distributed ledger technology (DLT), classification of virtual financial assets (VFS) and sets out rules for companies offering DLT products or services, including cryptocurrency licensing.

Under the VFA Act, DLT assets refer to virtual tokens, VFs, electronic money and financial instruments that inherently rely on or use DLT.

VFA is defined as any form of digital recording environment that is used as a digital medium or value storage for a unit account and is not a virtual token, electronic currency or financial instrument.

The regulatory framework of the VFA Act distinguishes between three types of licenses – registration, documentation for VFA agents and declaration for WFA service providers.

VFA Agent

When a VFA issuer intends to register a white paper or apply for a VFA service provider license, it must appoint a VFA agent who will advise the company on its obligations, ensure compliance with all applicable requirements set out in the VFA Law, and receive and retain all documents. A list of registered AFA agents is available at the Malta Financial Services Register.

An AFA agent is entitled to carry out professional activities as: a) a lawyer, accountant or auditor; b) a firm of lawyers, accountants or auditors or a corporate service provider; c) a legal organisation wholly controlled and owned by a person in clause a or b, whether in Malta or in another recognised jurisdiction. There may also be any other category of persons having licences, qualifications and/or experience who, in the opinion of the Ministry of Foreign Affairs, are competent to carry out the prescribed functions.

white paper

Anyone intending to publicly issue a DFA in Malta or issuing from Malta must prepare a White Paper that complies with the requirements of the DFA Act and register it with IFAS. The official White Paper is valid for 6 months.

Each White Paper must be written in English, dated, indicate the required information, and include a statement from the Management Committee confirming that the White Paper complies with the requirements of the DFA Act.

The designated DFA agent will complete the registration form and confirm to the Ministry of Foreign Affairs that the White Paper complies with the DFA Act and indicate any assumptions and reservations he has on any issues of the White Paper for the Ministry of Foreign Affairs’ consideration.

The registration form is divided into two stages and is completed by the AFA agent. After submitting the first stage, the MFA conducts an initial review of the submitted documents. Once the review is complete, the applicant is allowed to proceed to the second stage of the registration process.

The first stage includes the following parts:

• VFA agent and applicant data (the applicant may still be in the process of being established when submitting an application)

• VFA details and white paper details

• Fees and Declarations

The second stage includes the following:

• Organizational Structure

• Owner-beneficiary and eligible vehicle owner

• Internal Control

• Functions

All sections should be supported by supporting documents. If this is not sufficient, the Ministry of Foreign Affairs may decide to require the applicant to provide any additional information and/or documents through their AFA agent.

VFA Service Provider

VFA service providers are Maltese businesses that provide VFA-related services, as defined in the VFA Act. They are governed by the following principles:

• Doing business with integrity

• Communicating with investors in a fair and undisciplined manner

• Conduct business with necessary skill, care and diligence

• Ability to identify and manage conflicts of interest that may arise;

• Effective mechanisms to protect investor funds

• All its security access systems and protocols comply with relevant international standards

• Entities deemed to be cooperating voluntarily with the Ministry of Foreign Affairs and other relevant agencies

Virtual Financial Asset Service Provider License

Companies that intend to provide VFA services need to apply for a license by submitting an online VFA Service Provider Application Form through a registered VFA agent.

Cryptocurrency License Type:

• Category 1 (requires authorized capital – €50,000 or €25,000 with PII) – Financial advisors, authorized to receive and transfer VFA-related orders and provide investment advice

• Category II (authorized capital required – 125,000 EUR) – crypto wallets, peer-to-peer trading, managed portfolios

• Category III (authorized capital required – EUR 730,000) – OTC dealers and exchanges, market makers, except VFA exchanges

• Category IV (authorized capital required – 730,000 EUR) – the broadest license, allowing control of client funds as well as any type of cryptocurrency trading

Registration fee:

• Category 1 – 3,000 EUR

• Second Category – 5,000 EUR

• Category 3 – €7,000

• Category 4 – €12,000

Annual supervision fee:

• Class 1 – from €2,750

• Second Class – from €4,500

• Class 3 – from €6,000

• Class 4 – from €25,000

Applicant Requirements

Firstly, the applicant must be a registered company or from a recognised jurisdiction and open an office in Malta for the sole purpose of acting as a licensee whose actual activities match the authorised WFA service description.

The company’s operational structure should provide for internal compliance control procedures (AML/CFT, customer asset protection, cybersecurity, data protection, etc.).

In order to determine whether the nature of the applicant's activities falls within the scope of the AFW Law, all applicants must undergo a financial instrument test through a selected AFA agent. The test includes three categories – virtual tokens, financial instruments and electronic money. If the applicant's business is not related to any of these three categories, it falls into the UFA category by default.

Candidates need to pass eligibility and qualification tests and meet the criteria of integrity, ability and ability to pay. In addition, these basic requirements must be met continuously after the business opens. The assessment should be carried out by:

• Applicant Owner

• Beneficial Owner

• Member of the Management Committee

• Senior Manager

• MLRO

• Compliance Officer

• Risk Manager

• Any other person who will manage the applicant’s VFA business

Application Process

Companies wishing to register their white paper or apply to be a DFA service provider must apply through a registered DFA agent. A list of registered AFA agents is available at the Malta Financial Services Register. The application process may take three to six months, depending on whether the IFAD requires additional documentation.

Steps to take before submitting your application:

• Obtain an address in Malta to send notices or documents to applicants as required by law

• Beneficial owners, eligible owners, administrators and senior managers of the applicant must submit a personal questionnaire

The application process consists of three stages:

• Preparation

• Applicants must submit written notification of their intention to apply for an AFA permit to the Ministry of Foreign Affairs through an AFA agent.

• After receiving the notification, the Ministry of Foreign Affairs organizes a preliminary meeting with the applicant, who then has 60 days to submit his application

• Pre-licensing stage

• If the Ministry of Foreign Affairs is satisfied with the information contained in the application and the assessment is complete, it will issue a principal permit which will be valid for three months.

• The applicant has three months to address any issues raised and meet the licensing pre-conditions, which were set out in the Approval in Principle.

• After all requirements are met, IFAS issues a license to the AFW service provider

• Post-license and pre-business phase

• New licensees may be required to meet post-license requirements within 12 months from the date of issuance of the AFWService Provider License before commencing business

The following documents must be included with your application:

• Unified structure (information about the association’s direct and indirect owners and beneficial owners)

• Business plan summary (general business details, rationale for applying for a specific DFA license, and management information)

• Memorandum or Articles of Association and Rules of Conduct

• Declaration form (declaration of reliability of information provided and confidentiality notice)

• Corporate shareholder questionnaire (including authorizers, regulatory history, corporate structure, etc.)

• Qualifications assessment (details of proposed individuals, competency issues, potential conflicts of interest)

• Outsourcing assessment (details on outsourcing, mechanisms and responsible persons)

An Overview of Cryptocurrency Regulation in Malta

How to Open a Cryptocurrency Company in Malta

One of the most common legal structures for cryptocurrency companies in Malta is a private limited liability company (Ltd), which can be registered in nine weeks.

A new company can be registered with the Malta Business Registration Board (MBR) either by the shareholders or by their authorised representatives (such as a lawyer or accountant).

Requirements for Private Limited Liability Companies:

• 1-50 shareholders (local shareholders are not required)

• Minimum authorized capital applicable to the relevant VFA class

• A local registered office address, but no operating office is legally required

• At least one director

• A company secretary who does not have to be resident in Malta

• A Compliance Officer, an AML/CFT Officer and a Risk Manager (no nationality required)

Required files:

• Memorandum and Articles of Association

• Form BO1 containing details about the identity of the company’s beneficial owners

• Proof of local registered office address

• Evidence of transferred share capital (e.g. bank deposit slip)

• Notarized copy of shareholder’s passport

Key steps to open a cryptocurrency company in Malta:

• Verify and reserve a unique company name, which must end with Ltd.

• Open a bank account

• Transfer of authorized share capital

• Pay the registration fee

• Submit registration documents to MBR

• Obtaining a registration certificate from the MBR, which enables the company's activities to begin

• Apply for a VFA Service Provider License

• Register for tax with the Commissioner of Taxation (CFR)

Reporting requirements

All Malta private limited companies are required to prepare annual audited financial statements, which must also be used to prepare annual tax returns. The audit is carried out by an independent auditor registered with the local Accounting Board and in accordance with the International Standards on Auditing (ISAs).

An annual report should be prepared every year on the anniversary of the company's registration. The refund form must be submitted to the IDB within 42 days of the completion date. The refund form must be accompanied by a payment of 100-1400 euros (depending on the authorized capital).

In addition, a copy of the annual report and copies of the auditor's report and directors' report should also be provided. The annual accounts must be approved within 10 months after the end of the financial year, followed by a 42-day grace period.

New businesses are exempt from audits if they meet the following criteria:

• The company's maximum annual turnover does not exceed EUR 80,000, or a pro rata amount if the relevant accounting period does not exceed 12 months

• All shareholders of the company meet the shareholder eligibility criteria; a shareholder is deemed to meet the eligibility requirements if he or she has completed at least 3 ICF level education or equivalent, which must be completed by the Malta Qualifications Information Centre and not earlier than 3 years from the date of incorporation of the company

Tax framework

Malta has more than 70 international double taxation agreements, making it an attractive jurisdiction. In addition, VFA companies can gain clarity from the cryptocurrency-specific taxation guidelines issued by the CFR Office. These guidelines determine the application of income tax, stamp duty and VAT rates in relation to transactions or arrangements involving DLT assets.

The VFA tax principles clarify that the treatment of VAT, stamp duty and income tax for any DLT asset will depend on the purpose for which the asset is used, rather than the type of asset. For example, transactions subject to VAT should be analyzed based on the nature of the activity, the status of the parties involved and the specific circumstances of the particular case.

For tax purposes, DLT assets are classified into the following categories:

• Currency – Cryptocurrency that is the functional equivalent of fiat currency (created for the purpose of being a means of payment or exchange, or to function as a store of value)

• Financial tokens – equivalent to shares, bonds, collective investment scheme units or derivative products

• Utility tokens – Tokens whose utility, value or use is limited to purchasing goods or services within the DLT platform on which they are issued or distributed or within a limited network of DLT platforms

Standard tax rates in Malta:

• Corporate income tax – 35%

• VAT – 18%

• Stamp duty – 2-5%

Tax Benefit Example:

• According to the VFA Tax Guidelines, funds raised in an initial offering of financial tokens are not subject to corporate income tax

• The taxation system for transactions involving currencies such as Bitcoin is the same as for transactions involving fiat currencies, so profits from independent transfers of cryptocurrencies are not taxed.

• Malta’s VFA service providers can apply for the Highly Qualified Professionals (HQP) Policy, which enables them to enjoy a flat tax rate of 15% up to a maximum return of €5 million. Any portion above a specified amount is exempt from tax

Our experienced and reliable lawyers will be happy to provide you with customized support to help you set up your cryptocurrency company in Malta and obtain a VFA Service Provider License. We pay close attention to local regulations and are therefore able to guide our clients through every stage of the process.

Setting up a Cryptocurrency Company in Malta

<img loading="lazy" decoding="async" class="size-medium wp-image-7578 alignleft" src="/uploads/ESTABLISH-A-CRYPTO-COMPANY-IN-MALTA.svg" alt="Setting up a Cryptocurrency Company in Malta" width="300" height="300" title="Crypto Regulation in Malta 2025 12" srcset="/uploads/ESTABLISH-A-CRYPTO-COMPANY-IN-MALTA.svg 150w, /uploads/ESTABLISH-A-CRYPTO-COMPANY-IN-MALTA.svg 300w, /uploads/ESTABLISH-A-CRYPTO-COMPANY-IN-MALTA.svg 1024w" sizes="auto, (max-width: 300px) 100vw, In Malta, cryptocurrency companies operate within a well-designed regulatory framework that aims to protect clients, investors, market integrity and the country’s reputation. As such, the requirements for becoming a fully licensed cryptocurrency company in Malta are very strict. If you are well prepared, you will definitely unlock the numerous benefits of this friendly crypto jurisdiction.

Significant advantages of Malta’s business environment:

• A favorable tax system (tax incentives such as an inefficient corporate income tax (5-7%), international double taxation agreements, and a relatively low value-added tax)

• Malta is a member of the European Union, opening the door to the entire EU market

• A well-educated and innovative workforce to drive your business forward

• English is one of the official languages of Malta, which facilitates the registration and operation of companies

• Reliable banking system – Malta ranked 17th in the Global Competitiveness Index 2017-2018

The main legislation governing Maltese companies is the Companies Act 1995, which is largely based on the UK Companies Act 1985 and is harmonised with relevant EU directives. It regulates matters such as the incorporation, management and insolvency of companies.

The public register of Malta companies is maintained by the Malta Business Registry (MBR), which is responsible for the registration of corporate and business documents, the issuance of certificates, the collection of fees and penalties and the publication of notices.

The Malta Financial Services Authority (MFSA), the regulator for crypto companies in Malta, is another body you must be prepared to deal with in order to set up a fully licensed crypto company in Malta. Its main responsibility is to ensure compliance with AML/CTF regulations.

You do not need to be a Maltese citizen to enjoy equal rights to establish and manage a crypto business in Malta.

Types of Malta Business Entities

Limited liability companies – both private limited liability companies (Ltd) and public limited liability companies (Plc) – are generally well suited to most crypto-related business models. These types of businesses may allow shareholders to profit from the company’s activities without being personally liable for the company’s debts or other liabilities.

General requirements for company names:

• Should not be similar to other company names to avoid confusion

• The authorities will reject any name that is considered offensive or objectionable.

• The authorities will also reject applications for a name that has already been registered for another company where the date of the second application is less than three months.

The following documents are required to set up a company in Malta:

• Establishment Agreement

• Articles of Association

• Certified photocopies of shareholders’ passports

• BO1 form containing the identification details of the company’s beneficial owners

• Confirmation of local registered office address

• Evidence of share capital transfer (e.g. bank statement)

Any LLC formation agreement should include:

• Declaration that the company is a private company

• Company Name

• Name and address of each signatory

• Registered office address and corporate email address in Malta

• Company Facilities

• The authorized share capital size of the company to be registered

• the number and valuation of the shares, together with the number of shares owned by each signatory and the amount paid for each share (if the share capital is divided into classified shares, the rights associated with each share should be specified)

• Number, names and addresses of directors

• How the company is represented, including who is responsible for representation

• Name and address of the principal company secretary

• Where applicable – Date of incorporation

Documents that should be attached to the formation agreement of a joint stock company (Plc):

• The total or estimated amount of all start-up costs paid by the company before it is authorized to begin operations, including the costs of obtaining authorization.

• A description of any benefits given to any person involved in the transactions necessary for the formation or authorization of the company before it was allowed to commence business

Authorized capital requirements depend on the type of planned crypto activity. Currently, they are divided into the following categories:

• Class 1 (financial advisors authorized to receive and transfer orders related to VFAs and provide investment advice) - €50,000 or €25,000 with PII

• Class 2 (providing crypto wallets, peer-to-peer trading, managed portfolios) - €125,000

• Class 3 (Traders and traders without prescription, market makers, except for VFA trading) - 730,000 EUR

• Class 4 (control of client funds and any type of cryptocurrency trading) - €730,000

Limited Liability Company (Ltd)

One of the most common legal structures for cryptocurrency companies in Malta is a private limited liability company (Ltd), which is often chosen for operating small and medium-sized businesses.

Key Requirements for a Private Limited Liability Company (LLC):

• Its name should end with "Private Limited Company" or "Limited Company" or its abbreviation Ltd.

• 1-50 shareholders (no local shareholders required)

• Minimum authorized capital applicable to the corresponding VFA category

• Local registered office address, but legally no active office required

• At least one director

• The company secretary does not need to be a Maltese resident

• Compliance Officer, AML/CFT Officer and Risk Management Officer (no nationality requirement)

A private limited liability company (LLC) may be exempt from an audit if it meets the following criteria:

• The company's maximum annual turnover does not exceed EUR 80,000, or a corresponding amount if the reporting period does not exceed 12 months

• All shareholders of the company meet the shareholder eligibility criteria; a shareholder is deemed to meet the eligibility requirements if he or she has completed at least IWC Level 3 or its equivalent, recognised by the Malta Qualifications Centre, and completed no earlier than three years before the date of incorporation

To benefit from this exemption, the company must apply to the IDB within six months of the end of the reference period to which the exemption applies.

Public Limited Liability Company (PLC)

If you plan to start a crypto business on a larger scale, consider registering a public limited liability company (PLC), which can issue shares to raise capital and whose shares can be traded on a stock exchange.

Key requirements for a public limited liability company (Plc):

• The name should end with "Public Limited Company" or its abbreviation Plc

• At least two shareholders (no limit on the number of shareholders)

• At least two directors, who will form a board of directors responsible for smooth external and internal activities, must sign a corporate charter and articles of incorporation to indicate their consent to serve as directors

• secretary

• At least 25% of the equity must be transferred before registration

• Regardless of the size of the company, the directors should appoint an auditor who is resident in Malta and registered with the Malta Board of Accountants.

A joint stock company (Plc) is obliged to prepare a balance sheet, profit and loss account, directors' and auditors' reports which will clearly reflect the company's financial position, profits and losses, and assets and liabilities. The audited accounts must be submitted to the members of the general meeting of shareholders for approval within seven months after the end of the relevant reporting period and submitted to the IDB.

Any legal entity – both private limited liability companies (Ltd) and public limited liability companies (Plc) – can be set up as a trading company or a holding company. The former is the natural choice for planning to buy and sell products or services and bear all the associated risks and liabilities, while the latter only owns assets (i.e. shares and intellectual property) and is chosen for the purpose of distributing income to shareholders in order to obtain an effective tax rate, distribution of assets and reduce double taxation.

malta

capital	population	currency	gross domestic product
Valletta	519,562	Euro	$32,912

What you need to do

You can register a new company within three months, provided that all the necessary documents are carefully prepared and correctly submitted. If you do not want to travel to Malta, signing a Power of Attorney is an effective solution.

To set up a cryptocurrency company in Malta, please follow these steps:

• Check and preserve unique company name

• Find an office space in Malta (it can also be a virtual office) and obtain a legal address to which the Maltese authorities will serve notices or documents in accordance with the law

• Open a local bank account

• Transfer the required equity for the selected crypto operation category

• Pay the company registration fee

• Submit the company registration application and necessary documents to the IDB

• Obtain registration certificate with IDB

• Company Registration with the Commissioner of Revenue (CFR) for tax purposes

• Apply for VFA service provider license

Your company can only start operating in or from Malta if it is fully authorised by the MFSA. To start the application process, please send a written notification of your intention to the MFSA through your chosen VFA agent, who will take care of the entire application process, including submitting the online VFA Service Provider Application Form.

Taxation of Crypto Companies in Malta

Tax administration is the responsibility of the CFR, which has issued guidelines on the application of income tax, stamp duty and VAT to activities related to assets based on distributed ledger technology (DLT). The basic rule is that VAT, stamp duty and income tax on any DLT asset depends on the purpose for which the asset is used, not the type of asset.

Malta crypto companies are generally subject to the following taxes:

• Corporate Income Tax (CIT) – 35% (as determined by the Income Tax Management Act)

• Value Added Tax (VAT) – 18% (as determined by the Value Added Tax Law)

• Stamp Duty (SD) – 2%-5% (as stipulated by the Document and Transfer Duties Act)

• Social Security Contributions (SSC) – vary depending on the employee’s age, salary and other conditions (as determined by the Social Security Act)

The tax value of transactions related to DLT assets is determined based on the market value of the DLT assets. Payments made in cryptocurrencies are treated as any other monetary payments for corporate income tax purposes. In order to ensure the correct application of corporate income tax, it is necessary to keep proper records of transactions related to DLT assets. The value expressed in cryptocurrencies must be converted into fiat currency accounts submitted by the taxpayer.

Many DLT-related activities are exempt from VAT, such as:

• If crypto assets are accepted as payment instruments by certain operators, they are considered legal tender, which means that the exchange of cryptocurrencies for other cryptocurrencies or legal tender is exempt from VAT.

• Crypto mining itself is not subject to VAT. If a crypto mining service provider charges fees for activities such as transaction verification, the standard VAT rate will apply.

• If financial tokens are used only to raise funds, they are exempt from VAT as this activity is not considered to be the provision of products or services.

If you are determined to start a successful cryptocurrency business in Malta, our trusted team at RUE (Real Estate Agents) will be happy to support you at every stage. We offer comprehensive legal advice on company formation, crypto licensing and taxation. Additionally, if you require accounting services, we are happy to assist. Contact one of our dedicated experts today for an individual consultation.

We also offer Virtual Office services, which eliminate the need for expensive office rentals, equipment and staff. This is a profitable solution for small businesses that want to project a professional image and have actual office features such as a business address, meeting rooms and reception, while reducing costs and retaining the benefits of remote work. Learn about our Virtual Office services here.

Additionally, attorneys at  provide legal support for crypto projects and help adapt to MICA regulations.