CASP Website
The Malta Financial Services Authority (the "MFSA" or the "Authority") has sent a letter to Chief Executive Officers and Compliance Officers of Crypto-Asset Service Providers' ("CASPs") on the supervisory review of their websites.
The MFSA undertook a comprehensive review of the websites belonging to all CASPs licensed in Malta as of the 17th of March 2025 and already started operating in terms of their authorisations. The assessment comprised of evaluating the content of these websites and determining their adherence to industry best practices as outlined in the Markets in Crypto-Assets Regulation (MiCA) whilst acknowledging the presence of fair, clear, and non-misleading information and the absence of anything contrary to this regulatory requirement. Consideration was also given to the level of detail, clarity, and comprehensibility of the information, to better understand the quality of information consumers are interacting with.
Observations and expectations have also been identified and set out by the MFSA in regards to the standard of CASPs' websites and information therein:
- Website complexity and navigation – The MFSA during its exercise noted the presence of potentially complex and difficult to navigate websites. This was mainly due to the structure of the website and multiple layers of navigation. This complexity was mostly present in global websites intended to service clients across multiple jurisdictions. Use of heavy graphics was also deemed to be a contributing factor.
Expectation – The MFSA expects CASPs to undergo an assessment to identify streamlining possibilities through the possibility of simplifying the layout and navigation. Therefore, the assessment is to comprise of assessing and potentially reducing unnecessary layers of navigation, limiting the use of excessive graphics and interactive features that may hinder clarity and accessibility, while ensuring that relevant information is clearly presented and easily accessible.
2. Regulatory and Risk disclosures
2.1 Prominence of the licensing statement – The MFSA noted that licensing statements indicating that CASPs are licenced by the MFSA were not always being prominently displayed.
Expectation – CASPs are expected to display the relevant licensing statement in a font size which is clearly legible to consumers whilst also being proportionate to other content on the website. In furtherance, the MFSA expects that this statement is to be present on the homepage.
2.2 Content of the licensing statement – In conducting its assessment, the MFSA also came across instances where the licensing statement included incomplete or unclear regulatory references to the law and in other scenarios also providing an incomplete description of the services the respective CASP is authorized to offer.
Expectation – CASPs are expected to include complete licencing statements whilst specifically indicating the MFSA as the licensing authority and to provide full disclosure of services that it is authorised to offer. The letter also states that any other services not regulated under MiCA should be clearly indicated as such.
2.3 Prominence of the Risk Warning – The MFSA came across instances where risk warnings were not being placed in close proximity to which that warning applies or lacked sufficient prominence to effectively carry out its purpose.
Expectation – Risk disclosures are expected to be inserted in close proximity to the relevant information and in a manner of prominence to facilitate the user's visibility to the warnings and awareness of the associated risks.
3. Products and Services
3.1 Reference to investment services or other regulated services – The Authority noted that certain CASPs' websites include wording which may lead the consumer to the understanding that such company also provides investment services. Some of these instances, includes scenarios whereby CASPs and investment company would be part of a corporate group, without providing the necessary disclosures.
Exemption - Wording imparting the impression of the provision of investments services or other authorised regulated activity is to be avoided. The MFSA further expects that in cases where investment services and other regulated activity are provided through partnerships with other licensed activity, a prominent disclosure is provided with the relevant information on the regulated services and details of the partner company and its licensing status.
3.2 Reference to unregulated services – The assessment also brought to light information being distributed by virtue of these websites on services relating to activities falling outside scope of MiCA.
Expectation – CASPs are expected to, in view of promoting transparent information being delivered to the consumer, differentiate between regulated and unregulated services on their website.
3.3 Products and services not available for EU or EEA clients – The Authority has also identified a potential factor to the complexity and ambiguity of websites; being that information on products and services offered by various entities. This may lead the consumer to confusion as to which licensed entity offers which activity.
Expectation – Information on websites shall only pertain to products and services available in EU or EEA jurisdictions and in case of global websites, there should be a clear distinction between the products and services offered in and outside the EU or EEA jurisdictions. In this regard, geo-blocking or redirection mechanisms should also be implemented to ensure that EU or EEA consumers are automatically directed to the specific EU or EEA website.
3.4 Marketing practices and promotions entailing the provision of rewards or other forms of incentives – In its assessment the Authority noted that licence holders are engaging in marketing practices that include promotions receiving monetary and non-monetary bonuses.
Expectation – The MFSA acknowledges that CASPs are able to conduct such promotions to attract new clients and business growth, however, it is expected that these promotions align with the principles of fair communication, transparency, and consumer protection. It is also expected that terms and conditions associated with these rewards are sufficiently detailed and explain the mechanisms of the offer whilst also being easily accessible and prominently disclosed on the website.
3.5 Disclosure of conflict of interests – In certain instances CASPs did not adequately disclose any applicable conflicts of interest on their website. The Authority considers this to be of particular importance, especially when the CASP or group is responsible for both advising clients, managing portfolios, and executing trades since the risk of conflict of interest is heightened.
Expectation – The Authority expects these to be clear, transparent, and prominent whilst explaining the nature of the conflict, how they are managed, and the steps taken ensuring clients' interests are safeguarded.
3.6 Disclosure of Principal Adverse Impacts – Whilst carrying out its assessment, the Authority noted that these disclosures were omitted or presented in a format not aligning with the delegated regulation.
Expectation - The MFSA expects that Principal Adverse Impacts are in line with the delegated regulation and fully disclosed.
This update and indication of the MFSA's expectations provides additional insight to CASPs authorised in Malta as well as those seeking authorisation. It is thus important to ensure that information on the website is clear, properly positioned and does not include any misleading information.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
