Blockchain.com has made headlines by obtaining a MiCA license in Malta, a pivotal advancement for the company as it seeks to broaden its reach within the European market. This milestone empowers Blockchain.com to deliver its services throughout the entire EU, positioning it alongside other notable crypto firms such as Kraken, Gate, and Gemini, which are vying for a foothold in Europe via Malta.
A spokesperson for Blockchain.com emphasized that Malta’s regulatory framework offers the “right combination of transparency, institutional expertise, and strategic access”. The MiCA license will serve as a foundational element for Blockchain.com’s European operations. Fiorentina D’Amore has been appointed to lead the company’s EU strategy from Malta, strengthening its position for future growth.
The Markets in Crypto-Assets (MiCA) regulation is set to be fully enacted by late 2024. This innovative framework permits crypto companies to apply for authorization in one EU member state, subsequently allowing them to operate across the entire bloc of 27 countries. Blockchain.com perceives this as a unique opportunity to diversify its offerings, transitioning from traditional centralized exchanges towards a model that emphasizes brokerage services, institutional infrastructure, and self-custody wallets.
The spokesperson further noted that the company is also keeping a close watch on regulatory landscapes across the UK, Singapore, Latin America, and the Middle East. Although there have been unconfirmed rumors about a possible U.S. public listing, Blockchain.com remains open to this kind of expansion in the future.
On the regulatory front, Malta’s relatively relaxed stance towards crypto has raised a few eyebrows among EU regulators. In mid-September, regulators from France, Austria, and Italy expressed the need for tighter EU oversight, advocating for a more centralized role for the European Securities and Markets Authority (ESMA) in the crypto sector.
A review by ESMA on Malta’s licensing protocols pointed out that certain risks were inadequately evaluated during the authorization process. While the Malta Financial Services Authority (MFSA) has demonstrated commendable cooperation, highlighted areas of concern have sparked criticism. Detractors argue that Malta’s lenient regulatory approach has the potential to attract companies seeking lax conditions, given its history of offering “golden passports” and more relaxed gambling regulations.
The European Banking Authority (EBA) also echoed concerns regarding the phenomenon of “forum shopping”. This practice involves crypto firms seeking licenses in jurisdictions with more lenient regulations, like Malta, which the EBA warns could jeopardize the integrity of the EU’s financial system and complicate investor protection efforts.
Despite these regulatory worries, some legal experts maintain that variations in regulation are unavoidable within a single market framework. Dr. Hendrik Müller-Lankow, a legal expert from Kronsteyn, asserted that differing national approaches reflect the ongoing negotiation between EU integration and national autonomy. While many perceive regulatory arbitrage as simply a byproduct of adapting national laws to EU standards, others caution it presents considerable challenges.
As Blockchain.com embarks on this new chapter in Malta, it will be essential to navigate the delicate balance of regulatory compliance while harnessing the opportunities presented by the MiCA framework.
