Malta permits the establishment of investment funds with exposure to crypto‑assets within its regulated funds framework, subject to compliance with both the Investment Services Act and the evolving EU crypto‑assets regime under the Markets in Crypto‑Assets Regulation (MiCA).
While Malta has historically facilitated crypto‑focused strategies through vehicles such as Professional Investor Funds (PIFs), the regulatory landscape has shifted significantly with the introduction of MiCA and its local implementation through the Markets in Crypto‑Assets Act (Cap. 647). As a result, crypto‑asset fund structures must now integrate both fund regulation and crypto‑specific requirements, including the use of authorised service providers and enhanced governance, disclosure and risk management standards.
Malta has established itself as a prime fintech hub for over a decade by hosting and attracting a variety of financial services businesses and structures including Alternative Investment Funds (AIFs), Professional Investor Funds (PIFs), UCITS schemes, electronic money institutions and payment service providers, as well as having developed into the world’s largest iGaming hub.
Malta has sought to create a regulated framework for innovative technology that is built upon three pillars: consumer protection, market integrity and financial stability. In the framework of developing a broad national legislative strategy supporting Distributed Ledger Technology (“DLT”) assets and embracing the blockchain innovation, the Government of Malta has also been supporting the relative development in the financial investment services sector relative to the investment funds (‘’Funds”), in particularly PIFs.
- GDP GROWTH: 6.6% in 2017
- TIMEZONE: Central European Time Zone (UTC+01:00)
- MALTA FUNDS: 580+ Investment Funds with combined NAV of €9.7 billion
- MALTA FINANCIAL SERVICES AUTHORITY: Approachable, Single Regulator
- FUND DOMICILE RECOGNITION: Rated No. 1 Europe’s Favoured Fund Domicile (Hedge Fund Review Rankings)
- TOTAL ASSET VALUE PIFS: €6.6 billion
- SECTOR EXPANSION: 25% Annual Growth
- FINANCIAL SERVICES FRAMEWORK: EU and OECD approved
(Figures retained for marketing consistency; should be updated internally if required)
- Legal Form Variants
- Self-Managed Fund Option
- Investment in Crypto-Assets within a Regulated Framework
- Freedom to use Foreign Administrators
- Flexible Investment Strategies
- Rules and Documentation in English
Benefits
Malta PIFs remain regulated yet flexible investment vehicles for promoters wishing to establish collective investment schemes that target professional investors, though the degree of structural flexibility depends on the nature of the underlying assets and applicable regulatory thresholds.
In the context of crypto‑asset strategies, the establishment and operation of crypto‑focused funds must now align with both:
- the Investment Services Act (Cap. 370) governing collective investment schemes; and
- the Markets in Crypto-Assets Act (Cap. 647) and MiCA Regulation (EU) 2023/1114, which regulate crypto-assets and related services.
This dual framework results in additional regulatory layers affecting fund structuring, service provider arrangements and ongoing compliance obligations.
While earlier MFSA rulebook amendments enabled PIFs to invest in virtual currencies, crypto fund structuring is now based on crypto-assets as defined under MiCA, including:
- asset-referenced tokens (ARTs),
- e-money tokens (EMTs), and
- other crypto-assets.
The Investment Services Act establishes the principal regulatory framework governing investment services and funds. As a general rule, any fund operating in or from Malta must obtain an appropriate licence from the Malta Financial Services Authority (MFSA).
A PIF licence is issued by the MFSA once the fund satisfies the applicable requirements relating to its nature, governance and investment strategy. Where a fund invests in crypto-assets, additional considerations include:
- appropriate classification of underlying assets under MiCA;
- the use of authorised crypto‑asset service providers (CASPs) for custody, execution, exchange and other in‑scope services;
- robust safeguarding and custody arrangements for crypto‑assets; and
- enhanced disclosures, transparency obligations and risk management frameworks reflecting the volatility and technological risks associated with crypto‑assets
The establishment of crypto‑asset funds in Malta is subject to standard MFSA fund requirements, together with additional considerations arising from the nature of crypto‑assets and applicable MiCA obligations, including:
- Crypto‑asset expertise and suitable investment decision-making framework
- Appropriate valuation methodology for volatile or illiquid assets
- Fit and proper test
- Suitable legal vehicle and MFSA-approved offering documents
- Minimum investment of €100,000
- Local director, compliance officer and MLRO
- Authorised service providers, including CASPs where required
- Robust custody, safeguarding and responsibility-allocation arrangements
- Enhanced risk management and investor disclosures for crypto‑asset strategies
Who is this for
Why Malta
Key Contacts
Dr. Priscilla Mifsud-Parker
Dr. Danielle Mercieca
Requirements
Process/Timeline
Chetcuti Cauchi offers practical, solution-driven advice for the establishment of funds and to digital asset businesses looking to establish and grow from Malta. Our multidisciplinary team brings together legal, regulatory, technology and tax expertise to help clients move forward with clarity and confidence.
