Malta is becoming one of the most loyal and promising jurisdictions for the blockchain and crypto-services providers. The largest exchangers open offices over there, as the legal framework is improving and becomes more transparent. This is facilitated by the recent adoption of three bills - the beginning of their action falls on the autumn of 2018. The standards describe the regulations to cryptocurrencies and ICO, the requirements for crypto-projects and the procedure for their legalization.
- On virtual financial assets (VFAA) - according to it, exchangers, processors and other service providers of FAA services are issued with licenses for cryptocurrency, an obligation on the regular publication of data on the financial model of the company and other indicators established by the norms is fixed.
- On technologies and services - contains a description of the procedure for FAA suppliers’ certification and registering firms wishing to carry out an exchange business
- On digital innovations - the regulations for cryptocurrency and blockchain business are described.
Upon the bills entering in force, Malta will be a rare example of jurisdiction with the cryptocurrencies and their exchange regulation. The control over the field is assigned to the Directorate of MFSA financial services. Licenses for the cryptocurrencies exchange are within its competence. Observing the requirements of MFSA, the service provider will become a company authorized to manage VFA-exchange, operate with client money, virtual financial assets and crypto keys.
Getting of permissions
The Maltese cryptocurrency license is divided into classes - from limited to a complex one, with increased requirements:
- Class 1 (receiving and transferring orders, consulting on virtual financial assets) - a one-time fee of 3,000 euros, plus a progressive observation fee once a year from 2,750 euros.
- Class 2 (VFA-services, transactions with foreign money without an exchange for own accounts) - 5,000 euros, plus from 4,500 euros annually.
- Class 3 (all operations without exchange) - 7,000 euros and once a year from 6,000 euros.
- Class 4 (VFA-operations, including customer funds, custodial services) - 12,000 euros and from 25,000 euros annually.
The license for the cryptocurrency exchange is issued after the going through the procedure described in the draft laws. The regulator requires the creation of a “real” business with a physical office and a proof of good faith, experience, and technical resources.
It is necessary:
- to create a legal entity (Private Limited Liability Company) with a capital of 1,165 euros, having paid 20%;
- to rent a faclity and hire of at least 3 employees - a director can be a nominal representative;
- to prepare a documentation for the initial submission to MFSA - a description of the financial instruments testing, security systems and protocols, participation in the countering against money laundering, and so on;
- if the outcome is favorable, obtain a permit of the authorization department and assign a VFA operator (it can be the company itself).
"Prifinance" company will help to go through all the stages of the procedure, create a business and open an account in a Maltese bank. We will advise you on all the innovations in the legislation and will provide a support in the direct work.