The financial markets watchdog in Malta, Malta Financial Services Authority (MFSA), said it has received ‘Letters of Intent’ from 34 prospective , of which are 21 crypto exchanges seeking authorization in the ‘Blockchain Island.’
Until yesterday, October 31, these crypto providers had been operating under the transitory provisions set out in the country’s , which provides a set of rules for those operating a cryptocurrency-related business. Those wishing to continue providing their services in the rising crypto hub, following the expiry of the transitory period, are now required to apply for authorisation with the MFSA.
Licence applicants must show to the that they possess sufficient capability, coherence, and solvency to run the business. The legal notice also warns of administrative penalties for failure to comply with the provisions of the VFA rules.
Additionally, those applying for a licence will be classified at the discretion of the MFSA into one of the four categories which determine the requirements of licence holders.
Blockchain Island
The Mediterranean island has been already one of the most desirable locations to set up shop in the blockchain space. The European Union’s tiniest member has earned the name “,” with several top crypto exchanges have made Malta a central hub of their operations including Binance, OKEx, and most recently ZBX.
Malta was also one of the first countries to regulate the crypto industry and offer legal framework for its application. Crypto exchanges were amongst the industry players that benefited the most out of this deal, as the Virtual Financial Act finally enabled their legal operation.
With significant media attention being drawn towards the , the act also outlines stringent requirements for other service providers, including brokerages, portfolio managers, custodians, wallet providers, investment advisors, and perhaps most crucially, cryptocurrency exchanges.
Earlier in 2018, the Maltese Parliament passed a law setting the framework for blockchain, cryptocurrency, and digital assets, becoming one of the world’s friendliest jurisdictions for a sector that’s caused concern among other regulators. The nation also hopes that this will serve to clean up its system and discourage scam entities from registering in Malta.
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