Malta Crypto Exchange License – Malta ICO License
To apply for a license, the applicant must be a legal entity registered in Malta. If you only offer investment advice, the applicant may be an individual residing in Malta. The company must have at least 2 directors / managers to satisfy the “dual control” principle.
The MFSA may require a client to appoint a system auditor, as well as to have a system auditor in place at any time, even after obtaining a license. The system auditor is appointed / replaced subject to prior approval from the MFSA.
SA reviews / validates client DLT technology, prepares audit report and submits a copy to MFSA. The MFSA may ask another SA to review / test DLT at any time.
The following VFA services require a license when granted in relation to a DLT entity that has been identified as a virtual financial asset:
VFAA Class 1
• Receiving and transferring VFA orders; and / or
• Providing investment advice in relation to VFA; and / or
• VFA placement
VFAA Class 2
• Provision of any VFA services and storage or control of clients’ money, except for VFA exchange transactions or maintaining your own account
VFAA Class 3
• Provision of any VFA services and storage or control over the client’s money, except for VFA exchange transactions
VFAA Class 4 – VFA Exchange
• VFA exchange management;
• Holding or managing client money, VFA and / or private cryptographic keys;
• Custodian or nominee services solely in relation to the activities of such VFA exchange
An application for a VFA Services license can only be made through an approved VFA agent.
Step 1: Submit a letter of intent to the MFSA containing:
• Description of the proposed structure
• VFA service for which the license is requested
• Identify persons holding key positions
• Legal opinion that the proposed activity is not subject to the legislation on traditional financial services
Step 2. Participate in the mandatory pre-meeting at the MFSA offices
Step 3: Submit the application, supporting documentation and commission within 60 days of the preliminary meeting
Step 3: Once you are satisfied with the documentation / information and the assessment of suitability and proper qualifications, the MFSA issues a “formal approval” valid for 3 months, during which pending questions are completed
Step 4: The final license is issued
Step 5: It is necessary to start a business within 12 months from the date of issue of the license
• The application form must be completed and sent
• All documentation requested by the MFSA must be compiled and submitted, including a business plan, policies and procedures related to administration, compliance, risk management, security access systems and protocols, financial resources, capital adequacy, professional compensation insurance and any other documents requested by the MFSA
• Full due diligence documents in the company and the person who owns and controls the company must be submitted
• The company must be incorporated in Malta or, if not incorporated in Malta, it must be incorporated into a recognized jurisdiction, provided that a branch is also established in Malta and must meet any local presence requirements set by the MFSA
• The company must be managed by at least two individuals for “dual control”,
• Company facilities must be limited to acting as a license holder providing VFA services – the company cannot carry out any other activity that is licensed under any other law
• Payment of duties
All licensees will be posted on a public online registry.
The license holder must begin providing authorized services within 12 months from the date the license was issued, otherwise the license will be terminated.
Suitability and quality assessment
The suitability and quality assessment applies to:
• Persons holding at least 10% of direct / indirect interest in the company
• Voluntary owners
• Members of the Board
• Senior manager
• MLRO – must be a BoA member or compliance officer
• Compliance Officer (Compliance function can be performed by VFA agent) – can also act as MLRO
• Risk Manager (if applicable)
• Anyone else who effectively runs the VFA business
Must represent the PQ and demonstrate an acceptable level of knowledge, qualifications, professional knowledge and experience. It is also necessary to prove that sufficient time is devoted to the proper execution of the activity.
For more information on obtaining a license, please contact our specialist.