In a significant step towards becoming a fully licensed cryptocurrency operator across the European Union, major exchange Crypto.com has received in-principle approval for an EU-wide license from the Malta Financial Services Authority under the recently implemented Markets in Crypto Assets (MiCA) legislation.
The preliminary green light puts Crypto.com on the cusp of obtaining a crypto asset service provider (CASP) license, which would allow it to offer its full suite of crypto trading, custody, and other services to customers in all 27 EU member states under a unified regulatory framework. The company said it expects to receive the final license imminently.
Race for MiCA Compliance
Ever since the landmark MiCA legislation came into force in 2023, crypto companies have been jockeying to secure CASP licenses in order to access the massive EU market under a streamlined, harmonized set of rules. Leading exchanges like Binance, Coinbase, and now Crypto.com view MiCA compliance as essential to their global expansion strategies.
Crypto.com CEO Kris Marszalek hailed the Maltese approval as a validation of the company’s proactive approach to regulation and user protection:
Receiving full regulatory approval will allow Crypto.com to provide its market-leading range of crypto services across the EU under a streamlined and robust framework bringing a significantly improved degree of transparency to the sector.
What a MiCA License Means
Under MiCA, crypto asset service providers that meet strict requirements around consumer protection, anti-money laundering, and operational resilience can secure a unified license to operate across the entire EU bloc.
This “passportable” license massively reduces the regulatory complexity and costs of doing business in Europe for companies like Crypto.com. Instead of having to secure approvals from each member state, CASP license holders can service the entire EU market of 450 million people via a single authorization.
Regulatory Validation for Crypto.com
For Crypto.com, the in-principle approval from Malta is a significant coup after a challenging period. The company made headlines for the wrong reasons in 2022 with layoffs, hacks, and token sell-offs amid the broader crypto market downturn. Securing an EU-wide license could reinforce user trust and provide a springboard for renewed growth.
The Maltese approval also burnishes Crypto.com’s regulatory credentials. The exchange already holds authorizations in key markets like the UK, Singapore, and Dubai, with the CASP license set to significantly extend its compliant global footprint.
A Trailblazing Cohort
Crypto.com joins a small but growing cohort of firms, including Zodera Digital Exchange, BitPanda, and Revolut, that have secured or are close to securing pan-EU crypto licenses under MiCA.
Industry watchers expect this first wave of licensees to have a significant advantage in capturing market share as the regulatory regime takes hold. Companies that fail to secure EU-wide authorization could face an uphill battle and potential loss of access to the massive market.
Maltese Crypto Hub Resurgent
For Malta, Crypto.com’s approval underscores the Mediterranean nation’s resurgence as a European crypto hub. Once known as “Blockchain Island” for its crypto-friendly policies, Malta’s star faded somewhat amid slow licensing and FATF grey listing for AML deficiencies in 2021.
However, the country has worked hard to strengthen its regulatory framework and supervisory mechanisms. Granting a MiCA license to a major player like Crypto.com suggests Malta is back in the crypto regulatory vanguard and open for business.
Key Takeaways
- Crypto.com is on the verge of securing a MiCA license to operate across the EU
- CASP licensure would allow streamlined access to all 27 EU countries
- Major exchanges are racing to secure MiCA approval to capture EU market share
- Malta burnishing crypto-friendly credentials with key licensure
As the first major global exchange to near the MiCA finishing line, Crypto.com’s imminent licensure is a landmark for both the company and the EU regulatory landscape. It crystallizes the new era of harmonized crypto oversight taking hold across the bloc and could ignite a new wave of compliant crypto growth.
Of course, significant challenges remain. Stringent MiCA compliance will test the operational robustness and financial resilience of licensed firms. Consumer uptake of regulated crypto offerings is not guaranteed. And key details around the practical implementation of the new regime are still being hashed out.
But for now, Crypto.com can bask in its hard-fought regulatory validation, while Malta and the EU can hail the arrival of the MiCA era proper. The race for the crypto future of Europe’s massive market is officially on.
