FalconX has received authorization under the European Union's Markets in Crypto-Assets Regulation from the Malta Financial Services Authority, allowing the institutional digital asset prime broker to expand its regulated services across the European Economic Area.

The approval comes ahead of the July 1 expiry of the European Union's MiCA transition period. The deadline marks the end of the grandfathering regime that allowed existing crypto firms to continue operating while seeking authorization. Firms without a MiCA licence must either transfer clients to an authorized provider or wind down their activities.

Expands European Crypto Services Under MiCA

According to FalconX, the authorization allows it to provide trading, custody, and liquidity services to institutional clients throughout the EEA under the EU's unified crypto regulatory framework.

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Maruska Buttigieg Gili, Chief Compliance Officer,Europe at FalconX, said institutional clients increasingly expect "trust, transparency, and well-defined rules" as digital assets become more integrated into the financial system.

FalconX also pointed to its regulatory presence, noting that FalconX Bravo, Inc. is registered with the U.S. Commodity Futures Trading Commission as a swap dealer focused on digital asset derivatives.

Highlights Institutional Growth Across Markets

The company added that the MiCA authorization accompaniments its recently announced acquisition of 21Shares, which it said will further support its institutional operations in Europe's digital asset market.

Last year, the company partnered with Standard Chartered to strengthen banking services for institutional clients. Under the agreement, the bank provides global banking infrastructure and supports cross-border settlements across multiple currencies, enabling FalconX to expand its trading and financing services for institutional customers.

FalconX said it currently serves more than 2,000 institutional clients worldwide, including asset managers, hedge funds, banks, family offices, and digital asset firms. Since its launch, the company said it has facilitated more than $2.5 trillion in trading volume and originated over $8 billion in institutional financing.