WWCWildWildCrypto
Menu

Europe / Verified 2026-07-14

Is crypto legal in Malta?

Legal

Cryptocurrency is legal in Malta, which runs one of the EU's most established crypto licensing regimes. Its pioneering 2018 Virtual Financial Assets (VFA) Act is being wound down and replaced by MiCA: the MFSA no longer issues new VFA licences, and existing VFA holders must convert to a CASP authorisation — or wind down — by the EU-wide 1 July 2026 grandfathering deadline (Article 143(6) MiCA simplified-transition route).

Tax treatment

Outside capital-gains scope for 'coins' held as investment (not an enumerated chargeable asset); ordinary/business income for trading profits, mining, staking, and DeFi rewards; tokens with security-like rights may be taxed as financial instruments

Malta has no dedicated crypto tax law but applies the Income Tax Act via 2018 Commissioner for Revenue guidelines that split digital assets into 'coins' (payment-type tokens like Bitcoin) and 'tokens.' Malta's capital gains tax only reaches a specific enumerated list of assets (immovable property, securities, business goodwill/IP, partnership interests, trust interests) — ordinary cryptocurrency 'coins' are not on that list, so gains on coins held as a personal, non-business investment fall outside capital gains tax regardless of profit size or holding period. Profits from frequent/professional trading, and income such as mining, staking, or DeFi rewards, are instead taxed as ordinary income at Malta's progressive rates (0-35%).

Non-domiciled residents are taxed only on Malta-source income and remitted foreign income — foreign-source capital gains (including crypto) are not taxed even if remitted. From 2026, DAC8 requires EU crypto-asset reporting to the Commissioner for Revenue, increasing visibility though reporting itself doesn't change what's taxable.

Can banks handle crypto here?

Malta's licensed CASP sector coexists with a cautious domestic banking sector. Bank of Valletta, the country's largest bank, has a stated policy against SWIFT payments to cryptocurrency exchanges and has closed accounts showing regular crypto-exchange activity; HSBC Malta and APS Bank are similarly described as strict on crypto-linked transactions. This is bank-level AML risk posture, not a legal prohibition.

Buying and selling crypto in Malta

Malta hosts MFSA-authorised CASPs directly — including OKX, Crypto.com, Gemini, Gate, Blockchain.com, and BVNK (13 CASPs as of 2026) — giving residents EU-passported, in-country on-ramps. Because major domestic banks restrict transfers to exchanges, residents commonly fund accounts via international e-money/neobank rails rather than direct BOV/HSBC/APS transfers.

Worth knowing

Malta's early (2018) VFA regime built its 'Blockchain Island' reputation but also drew criticism for outrunning technical/supervisory readiness. ESMA ran a fast-track peer review of Malta's CASP authorisation and supervision practices in 2025, reflecting continued EU-level scrutiny even as Malta remains a leading EU licensing hub for exchanges.

Authority sources used

Outbound links are included for verification and entity authority, not decoration. Every claim on this page traces back to one of these.

FAQ

Is it true crypto gains are tax-free in Malta?

Only for personal, investment-type holdings of 'coins' like Bitcoin — capital gains on those fall outside Malta's tax net because crypto isn't on the law's list of taxable asset categories. Frequent/professional trading profits and income like staking or mining rewards are still taxed as ordinary income at up to 35%.

Can I freely cash out crypto through a Maltese bank?

Not straightforwardly. Malta licenses crypto exchanges directly, but major local banks including Bank of Valletta restrict or block transfers tied to crypto exchanges, so many residents use international e-money accounts instead.