MiCA: in the face of French complexity, Malta establishes itself as a leader in Europe

Tuesday, January 28, 2025

While Malta has just granted the first MiCA licences to the Bitpanda, OKX and Cryptocom platforms, lawyer Arnaud Touati (Hashtag Avocats) has written an opinion piece expressing concern that France could fall behind in this area due to overly complex regulations.

Two rooms, two atmospheres.

Registering in France is the easiest and certainly the most logical solution for a French player: the regulators are competent and very familiar with crypto regulations.

However, while France is multiplying its regulatory requirements - PASSI cybersecurity audits, lengthy delays and prohibitive costs overall - Malta is moving forward with formidable efficiency: three of the biggest crypto platforms, OKX, Cryptocom, and Bitpanda (also with the German regulator), have just obtained their MiCA approval in record time.

Let's be clear: Malta is not just a strategic choice, it's a no-brainer for pragmatic entrepreneurs who are prepared to move abroad to gain efficiency - Gemini announced a few days ago that it was setting up its European headquarters there, not least for these reasons; and they're not the only ones.

👉 Regulatory efficiency: three weeks to issue a MiCA approval. This is not just an administrative feat, it is a demonstration of efficiency that is the envy of many players in France.

👉 Advantageous taxation: Malta offers social security contributions and taxes that are much more competitive than those seen in Western Europe.

Why wait?

As a reminder, MiCA is a unified European regulation covering the 27 countries of the European Union. The difference is therefore no longer in the regulations themselves, but in the ability of regulators to approve quickly and properly, and in the tax and social environment from which project promoters benefit.

MiCA is also designed to encourage the European passport: being approved in one country means opening the doors to the whole of the Union.

The competitive advantage for these platforms is therefore undeniable. On the other hand, in France, every day that goes by costs a lot of money.

French companies, still bogged down in excessively lengthy procedures, risk losing market share, visibility and above all credibility in the face of their international competitors, who will not fail to target the French market, while developing their communications everywhere else in Europe.

Entrepreneurial pragmatism is the key

Plan A: It's up to crypto projects to think about setting up where it's quick and financially advantageous if they feel they can create substance locally and relocate their operational teams.

Plan B: Considering that France remains the reputational grail par excellence, at the very least, it seems essential to me to look abroad as a subsidiary option with a view to anticipating any blockages that approval in France might generate by diversifying one's options as far as possible.

Regulating quickly and effectively means giving oneself the means to succeed in an ultra-competitive market. Not to do so is to agree to remain on the starting line for ideological reasons. It's time to choose...

This analysis is not investment advice. It has been prepared without taking into account your personal situation, particularly your financial situation, risk profile, and investment objectives.

Before investing in any product, investors should fully understand the risks involved and consult their own legal, tax, financial, and accounting advisors.

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