European financial regulators are investigating whether Malta violated MiCA regulations when authorizing encryption companies.

On July 10, CoinDesk reported that the European Securities and Markets Authority (ESMA), the financial regulatory body of the European Union’s 28-member trade bloc, has conducted a peer review of Malta’s implementation under the Markets in Crypto-Assets Regulation (MiCA), with particular attention to the fast-track authorization process for a certain unnamed encryption company. ESMA’s Peer Review Committee (PRC) focused on the authorization status of the Crypto Asset Service Provider (CASP entity), and despite “significant issues remaining unresolved or requiring remediation” at the time of obtaining MiCA authorization, the entity was still approved for authorization.