The Regulation of Markets in Crypto Assets (MiCA) marked a turning point for crypto in Europe. It transformed a mosaic of national regimes into a single, harmonized framework between Member States. Malta has chosen to be at the forefront of crypto regulation. The early adoption of the local law on virtual financial assets in 2018 allowed us to develop expertise and achieve a seamless transition to MiCA. In fact, Malta has become the European hub for some of the biggest names in the crypto industry.
Crypto-asset activity is, by design, borderless. Passport rights under MiCA reflect this reality. A single authorization in a home jurisdiction unlocks the MiCA passport allowing access to the entire EU/EEA market. However, some crypto asset service providers (CASPs) underestimate the risks, particularly when marketing to retail customers, running social media campaigns, and engaging influencers, affiliate marketers, and brand ambassadors.
MiCA defines the basic marketing requirements. Communications must be fair, clear and not misleading to investors. However, marketing is inherently local. A single, misaligned message or action could lead to coercive measures in a host Member State. For example, the Comisión Nacional del Mercado de Valores in Spain has actively enforced local rules on advertising for crypto-asset services, imposing penalties for non-compliant communications.
Consumer protection overlays make marketing tricky. Several Member States impose enhanced disclosure or transparency obligations, including detailed risk warnings, specific fee disclosures and clear pre-contractual information. They can also require PSAPs to follow rules on customer complaints handling and redress mechanisms – which go beyond the MiCA harmonized standards.
The rules governing online and social media advertising can also vary widely. Minor missteps – like a poorly translated risk warning – can trigger regulatory review. In Germany, the Unfair Competition Act prohibits “aggressive” advertising practices that could mislead or put pressure on consumers. In Italy and other jurisdictions, marketing content must be provided in the local language to ensure clarity, transparency and general consumer protection. The Netherlands requires influencers to register with the Dutch Media Authority if certain thresholds are met. France also has strict laws on influencers and unsolicited contact.
Risk mitigation requires proactive and ongoing diligence. PSAPs should map the regulatory landscape of each target country covering language requirements, disclosure obligations and restrictions on marketing techniques. Implementing pre-publication content reviews, multilingual controls, and a formal approval process by senior management will prevent unintentional violations. Additionally, clear documentation of these processes provides a critical audit trail in the event of regulatory investigations.
PSAPs that manage local requirements and effectively leverage the MiCA passport can build credibility and a strong footprint across Europe.
