The European Financial Regulator is investigating whether Malta violated the MiCA regulation when authorizing crypto firms.

On July 10th, as per CoinDesk, the European Securities and Markets Authority (ESMA), which is the financial regulatory body of the 28-country trade bloc of the European Union, has carried out a peer review of Malta's implementation of the Markets in Crypto-Assets Regulation (MiCA) framework. The review focused specifically on the island's expedited authorization process for an unnamed crypto company. The ESMA's Peer Review Committee (PRC) specifically examined the authorization of this crypto asset service provider (CASP entity). Although there were "significant outstanding issues to be resolved or rectified" at the time of MiCA authorization, the entity was still granted authorization.