Crypto-brokerage Instacoins is seeking to become one of Malta’s first service-providers to be regulated under the Virtual Financial Assets (VFA) Act.
VFA Service Providers will need to commence the licensing process with the Malta Financial Services Authority (MFSA) by 31 October 2019 in order to continue providing VFA services.
“The VFA Act regulates the offering of virtual financial assets to the public and services provided in relation to virtual financial assets, in or from Malta. Instacoins is currently working closely with its VFA Agent to assist us in becoming one of the first local companies to be licensed. To date, there are no entities licensed by the Authority under the VFA Act,” says Dr Ursula Farrugia, Head of Legal at Instacoins.
The Instacoins team is currently working closely with its VFA Agent, Blockchain Advisory, who serve as the company’s gatekeepers for the MFSA and liaison for all VFA-related licensing requirements. MFSA will require a Letter of Intent which includes:
- A detailed description of the structure of the VFA Service Provider;
- The VFA service(s) for which licensing is being sought identifying key persons within the structure;
- A legal opinion that the services fall outside the traditional financial services framework.
Upon receiving the Letter of Intent, the MFSA will schedule a preliminary meeting with the VFA Service Provider and its VFA Agent.
Instacoins Ltd. will then have 60 days to submit the full MFSA Application Form together with a Business Plan, Financial Projections, Due Diligence Documents and other supporting documentation.