Malta has become a magnet for cryptocurrency and blockchain. Studies show its market’s revenue might reach US$6.3 million in 2024. Additionally, it will continue growing at a rapid CAGR of 9.05% until 2028. These figures alone are a sign virtual money has come to stay in this country.
However, before your business uses digital money in Malta, it must first get a Malta crypto license. Here is all you need to know about it.
In 2018, the Malta Blockchain Acts were introduced. These acts set rules for blockchain, cryptocurrencies, and distributed ledgers. These bills are:
This law ensures that virtual money and tokens are traded correctly. It also has rules for Initial Coin Offerings and ensures that virtual money and exchange provider services follow the law.
This law manages the registration and function of ITAs. These include blockchain platforms and services. It accepts smart contracts and provides a safe place to test new technologies and services.
The VFA regulations have clear guidelines and requirements. They give businesses certainty and cut risks in the sector.
As an EU member, the country gives Malta cryptocurrency license holders access to the European Single Market. This allows them to offer services to EU customers through their passports.
An operating license from them signals to investors that a company operates in a regulated place. It ensures investor protection and market integrity.
By following the regulations set by the Maltese government, you avoid potential legal troubles such as fines or penalties. This protects your business from financial losses and builds trust with customers, partners, and investors. Compliance also helps your business access new markets or partner with other companies.
Their VFA regulations are flexible, accommodating diverse business models in the blockchain sector.
It supports digital tokens and blockchain businesses. It offers access to skilled talent, networking, and specialized legal and financial advice.
With a Malta cryptocurrency license, businesses can do lots of things involving virtual money and blockchain technology, such as:
To get a Malta crypto exchange license, there are a few steps you need to follow, such as:
While it usually takes several months, the MFSA aims for efficient processing for companies seeking a Malta crypto license. InteliumLaw can help you get this license. The process involves these steps:
General tax rates in Malta are as follows:
The tax implications and social security contributions (SSC) of a Malta cryptocurrency license vary but some general considerations apply:
Malta has a 35% corporate tax rate. But, companies, especially those in virtual money trading, may qualify for effectively lower rates in case of the correct corporate and tax structuring.
Virtual money services are VAT-exempt. But, VAT on virtual money transactions is based on EU directives and local rules.
Depending on factors like the holding period and transaction nature, profits from virtual money sales may face capital gains tax.
Malta doesn't take any tax money directly from dividends, interest, or royalties for entities/individuals outside of Malta. Exceptions apply.
Licensed entities may face annual licensing fees and levies from the MFSA. It funds AML/CFT supervision and enforcement.
A virtual money business's tax residency in Malta can affect its tax liability. It affects treaty coverage and foreign tax credit availability.
Crypto license Malta last one year and need annual renewal. To keep the license, businesses must meet regulatory obligations like сompliance reporting, AML/CFT measures, security standards, operational requirements.
No. They should reach out to the local tax authority. These help to ensure compliance with tax laws. Seeking guidance can help navigate complexities. These include corporate tax, VAT, and the Malta crypto exchange license cost.
It is not so difficult to obtain a permit in Malta, if you are prepared. Firstly you need to get approval from the MFSA. They check your business plan and if you comply with the laws. They also require strong AML/CFT measures and proof of security and operational abilities. InteliumLaw will give you professional guidance and help you prepare for the process.
Yes, a physical office is usually required for obtaining a crypto license Malta. The MFSA expects applicants to have local office space and staff. This shows a commitment to doing business in Malta. Requirements may vary by license type and business activities. So, it's best to consult legal and regulatory experts like IntelimLaw, who know Maltese crypto laws, for tailored guidance.
Yes, an individual or company can own part of a business in Malta. But, the rules might change depending on what kind of corporation or individual wants to own part of the business. InteliumLaw can help you with crypto company formation in Malta.
Legislation regulates many areas of business. Therefore, it is important that the activities of any company are legally correct. And this can be a problem
Legislation in the country is constantly changing. New concepts are added, existing norms are changed and obsolete ones are removed. Businesses do not always have
Inteliumlaw has a developed network of foreign banks and non-banking financial institutions, as well as payment aggregators around the world to offer our clients tailored
The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.
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