Cryptocurrency
regulation in Malta

Many perceive Malta as a very profitable offshore zone where you can profitably obtain a work permit. It has a tax treaty with 70 countries worldwide, allowing you to work legally in most EU countries. However, we advise you to pay attention to the crypto regulations in Malta and carefully study all the points. You can contact our company’s specialists, who will answer all your questions and help you get a work permit faster and easier.

Legislative framework on the regulation of the crypto industry

Malta is one of the few EU countries that has established well-thought-out and logical requirements for regulating the crypto industry. Today, the activity of this market is regulated by several vital documents:

  • Law on Innovative Technological Mechanisms and Services;
  • Law on the Prevention of Money Laundering;
  • The Law on Virtual Financial Assets.

These laws state that for every crypto organization that wants to obtain permission to operate in this jurisdiction, you must install systems to prevent money laundering and terrorist financing. You must also comply with other rules and regulations governing digital financial assets.

It is challenging for a person without a legal education to understand these legislative acts, so you should seek help from the specialists of our company, who will tell you what you need to pay attention to in the first place.

Types of crypto licenses

Crypto regulations offer one of 4 types of licenses:

  • Class 1 – financial advice;
  • Class 2 – crypto wallets;
  • Class 3 – OTC traders;
  • Class 4 – exchange of crypto assets of any type.

Which class you choose depends on the number of fees and annual fees. The more services you plan to provide and the larger the authorized capital, the more you will be forced to pay.

If you need help understanding which type of cryptocurrency license in Malta is right for you, we advise you to contact our specialists for assistance. They will analyze your company’s activities and suggest which is right for you.

How to open a cryptocurrency company in Malta?

Cryptocurrency regulation in Malta

Obtaining a cryptolicense in this jurisdiction takes an average of 9 weeks if your company meets the basic requirements of this jurisdiction.

Obtaining a work permit involves the origin of several necessary steps. So, you need to create a unique name for your organization immediately. It will be good if you come up with several options, after which experts will check their uniqueness. The name of the organization must end with Ltd.

Next, you must open a bank account and bring the authorized capital in full. The authorized capital must be kept in one place in the official bank account. It will be good if the money is credited to the account in one payment. Next, you must pay registration fees, which may depend on your license class.

After completing the preparatory stage, you should submit company registration documents to the regulatory authorities. 

Qualified lawyers must check the list of documents and the correctness of their filling. If the regulators notice fundamental errors, they may deny you a work permit

Once you receive a response from the regulators, your organization can start. You have registered a company in that jurisdiction, and you can apply for a crypto license.

You also need to register with the office dealing with taxes-related issues.

As you can see, registering a crypto business in this jurisdiction is complicated, so it makes sense to turn it over to qualified lawyers. They will do all the hard work for you and keep your involvement in the process to a minimum. You will be able to do more important things and not study the legislation of this country.

Organization requirements

Malta cryptocurrency regulation sets quite simple requirements for organizations that want to get a work permit. This jurisdiction is suitable for giant corporations and small companies where 1-2 people work.

Among the most critical points are the following:

  • 1-50 shareholders;
  • The minimum authorized capital depends on the class;
  • 1 director;
  • Open office;
  • One secretary and security officer should be on staff who will monitor compliance with the money laundering law.

At the same time, the country’s government does not establish requirements for the citizenship of your team members and the director. However, a security specialist must have specialized education and work experience in a relevant position.

Your company must have a physical office in that jurisdiction, and there are no legal requirements that you must work in the country.

What documents need to be prepared?

You can prepare a few documents to earn on cryptocurrency in Malta. It would be best if you drew up a memorandum and charter, which will spell out the main points of the organization’s functioning, the authorized capital, what services you will provide, and much more.

You also need to prepare documents about all team members (copies of passports, information about the identification of the company’s beneficial owners). The more details you provide about your team, the better, especially if your people are experienced in the field and have a good reputation.

You also need to provide a document confirming the lease of the office and the availability of a bank account and authorized capital.

If you are afraid that you will not be able to collect the necessary documents on your own, we advise you to seek help from our specialists. They will help to compile a complete list of papers and check how correctly they are filled out. You do not need to fly to this country. You can send the necessary documents to specialists by e-mail, and specialists will be able to receive an office and a bank account even without your presence. But to conduct activities on your behalf, specialists must obtain a power of attorney.

Reporting requirement

Once a year, you must submit a full report on your company’s activities and pay an annual fee (the amount depends on the license class). In this report, you must indicate the entire financial turnover for the reporting period, income and expenses.

If government authorities have questions about your reporting, you must confirm the data with relevant documents. Your company must undergo a full audit, where government agencies will examine the activities of your company.

Suppose companies are exempt from audits. These include firms whose annual capital is at most 8 thousand dollars. Also exempt from the audit are companies whose shareholders are highly qualified. They must have a specialized education, which they received earlier than 3 years before the company’s opening.

Taxation of cryptocurrency activities in Malta

Unlike many other offshore zones, Malta sets relatively high taxes. Corporate income tax here is 35%, and you also have to pay a value-added tax – of 18%.

However, several companies can count on preferential taxation. To find out if you are one of them, you should contact our specialists. They will carefully study your organization’s activities and suggest how you can reduce taxes.

Price

If you want to work in Malta crypto, you must understand that obtaining a permit in this jurisdiction can be expensive. So, you need to be financially able to deposit the authorized capital (the amount depends on the license class) and pay registration fees (from 3 to 12 thousand euros, depending on the type).

It is almost only possible to obtain such a work permit with the help of lawyers. You can order a turnkey license or do some work yourself (open a bank account or find an office), which will allow you to save a lot.

Suppose you want to calculate the exact cost of obtaining a license. In that case, you should contact our specialists, who will evaluate your company’s activities, suggest which license class suits you, and, based on this, calculate the exact cost of obtaining a license.

Conclusion

If you want to work legally in the EU countries, getting a work permit in Malta will be good. It does not impose complex requirements for applicants, it has a stable economic situation, and the conditions for regulating the crypto industry here are straightforward and understandable. If you want to understand the issues of regulation of the industry in this jurisdiction, you should seek help from the specialists of our company. They will answer all your questions and conduct a full consultation so that you understand what problems you may encounter.

FAQ

Yes, now Malta is one of the few countries in the EU with very well-thought-out rules for regulating this industry. If you want to work here legally, you must get a work permit.

Many believe that Malta is an offshore zone where there is preferential taxation. The amount of taxes here is really high and even more than in other countries, for example, Estonia or Lithuania.

Binance is not licensed to operate in this jurisdiction. The country’s government warns its residents that trading currencies on such a platform is associated with significant risks.