Virtual Financial Assets

In Fintech

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Malta is a leading player in the regulation of crypto-assets and the use of blockchain technology. The Virtual Financial Assets Act (VFAA) defines Virtual Financial Assets (VFAs) as “any form of digital medium recordation that is used as a digital medium of exchange, unit of account, or store of value and that is not electronic money, a financial instrument, or a Virtual Token.” A license must be obtained from the Malta Financial Services Authority (MFSA) in order to provide VFA services, which are listed in the Second Schedule to the VFAA:

  • Reception and Transmission of Orders;

  • Execution of orders on behalf of other persons;

  • Dealing on own account;

  • Portfolio management;

  • Custodian or Nominee Services;

  • Investment Advice;

  • Placing of VFAs; and

  • The operation of a VFA exchange.

There are four classes of VFA licenses which can be obtained: 

Key Features

Licence holders authorised to receive and transmit orders and/or provide investment advice concerning one or more virtual financial assets and/or the placing of virtual financial assets.

Class 1 Licence Holders are not authorised to hold or control clients’ assets or money.

Licence holders authorised to provide any VFA service but not to operate a VFA exchange or deal for their account.

Class 2 Licence Holders may hold or control clients’ assets or money in conjunction with the provision of a VFA service.

Licence holders authorised to provide any VFA service but not to operate a VFA exchange.

Class 3 Licence Holders may hold or control clients’ assets or money in conjunction with the provision of a VFA service.

Licence holders authorised to provide any VFA service.

Class 4 Licence Holders may hold or control clients’ assets or money in conjunction with the provision of a VFA service.

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