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Malta Crypto Exchange License

Updated on Thursday 03rd November 2022

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Malta Crypto Exchange License
 
Malta's crypto exchange license is required for foreign investors who want to set up a cryptocurrency company in Malta and trade virtual money on the international market. In order to understand the requirements for obtaining the crypto exchange license in Malta, we suggest you talk to our team of company incorporation specialists in Malta. They can also handle the registration procedure for all types of companies available in this country.
 

What are the conditions for obtaining the crypto exchange license?

 
In order to deal with virtual financial assets in Malta, it is necessary to observe the requirements for obtaining the crypto exchange license like the following:
 
  • a VFA (virtual financial assets) agent needs to be appointed in order to apply for the necessary license;
  • the application needs to be sustained by complete information about the system, applications, security access and by a programme of operations;
  • a declaration made by the VFA agent must sustain the fact that the applicant is qualified for cryptocurrency exchange in Malta;
  • a crypto exchange license is used only for digital money operations and no additional activities.
 
Knowing the rules for opening a company in Malta, or for obtaining the crypto exchange license will help an entrepreneur establish rapidly the cryptocurrency company in Malta. Feel free to get in touch with our team and find out how we can help in this matter.
 

Criteria for obtaining the cryptocurrency license

 
The protection of the future users, the innovation and the reputation will weigh much at the time of application for a crypto exchange license in Malta. The suitability of the applicant is also considered when applying for the mandatory license. We remind that the financial authorities in Malta have recently adopted a set of laws supervising the digital money exchange.
 

Preventing the market abuse

 
Cryptocurrency companies in Malta may be exposed to business crimes like insider dealing cases or market abuse and manipulation. It is good to know that MFSA (Malta Financial Services Authority) deals with such cases if the licensee reports the inappropriate activities in the cryptocurrency sector in Malta. If you would like to know more details about how you can open a company in Malta or about the mandatory conditions for getting the crypto exchange license in Malta, we suggest you talk to our team of consultants at any time.
 

What is a VFA agent?

 
The VFA agent can be appointed at the time you wish to apply for the crypto exchange license in Malta. He/she can undertake the Financial Instruments Test necessary to determine the nature of the cryptocurrency company whether it deals with virtual tokens, virtual financial assets, electronic money or other financial tools. The same agent will make sure that the business plan regarding the digital money and the necessary license in this sense are respecting the applicable laws before applying for the needed permit. The MFSA oversees the activities of cryptocurrency companies in Malta and issues the crypto exchange license if all the above-mentioned conditions are entirely respected.
 
It is good to know that the VFA agent will act as an important contact between the applicant and the financial authorities in Malta when applying for the license. He/she will handle the documents with the relevant authorities and will ensure the business will conform with the newly established and accepted regulations for supervising the activities of the companies dealing with cryptocurrency operations in Malta. Moreover, the same agent will have to make a financial report and submit it to the MFSA on a yearly basis. Find out more details about a VFA agent and his/her responsibilities from our team of consultants in Malta.
 

Fees for obtaining the crypto exchange license in Malta

 
The application for obtaining the crypto exchange license is subject to a fee of EUR 12,000. Also, for profits of EUR 1 million, a fee of EUR 25,000 is applicable. We remind that the VFA Class 4 license is the most important one and allows an entrepreneur to deal and control the money, the virtual financial assets and the cryptographic keys of an individual involved in digital money businesses in Malta.
 

Cryptocurrency regulatory framework in Malta

 
Since November 2018, the cryptocurrency companies in Malta are overseen by the Virtual Financial Assets Act and the Innovative Technology Arrangements and Services Act, with the mention that any cryptocurrency activity falls under the rules of the Maltese financial laws. According to the above-mentioned set of laws, the cryptocurrency is defined as the digital representation which can be traded virtually with the help of specific financial platforms.
 
The virtual money is available for exchange in agreement with the community users of digital money and cryptography around the world as long as it has a legal status. It is good to know that the Maltese government accepts the fact that few of the cryptocurrencies available in the country are supervised by the existing financial legislation, even though there are no particular rules for trading and offering of cryptocurrency in Malta.
 

What are the provisions of the Virtual Financial Assets Act?

 
The VFAA or the Virtual Financial Assets Act in Malta provides information about the licensing conditions for establishing the cryptocurrency operations in Malta, plus the rules for ICOs (initial coin offerings). The legal status of a cryptocurrency in Malta is now verified by the Financial Instrument Test (FIT), in order to see if the digital money can be controlled as a financial tool. The test will show if the cryptocurrency can be qualified as a virtual token, a financial instrument or electronic money.
 

Malta Digital Innovation Authority Act

 
The Maltese Digital Innovation Authority is a governmental entity which sustains the blockchain techs with the help of a series of policies. The same authority is entitled to collaborate with foreign countries in matters of virtual currency, the creation and the use of the blockchain technology, meaning that the digital money must be legally registered before used in Malta.  We invite you to talk to our specialists and find out how you can register a company in Malta. Feel free to ask any questions about how you can start a business, including the ones involving initial coin offerings in Malta.
 

The Innovative Technology Arrangements and Services Act

 
In order to promote the accountability and the transparency of the blockchain technology, the authorities in Malta implemented the Innovative Technology Arrangements and Services Act. The distributed ledger technology enters the discussion because it involves the technologies and applications of the digital money in Malta which need certain approvals from the Maltese government.
 

Anti-money laundering legislation in Malta

 
Once the legislation controlling the virtual currency in Malta has been released this year, the Maltese authorities decided on implementing the anti-money laundering rules and regulations. In this case, the Prevention of Money Laundering and Funding of Terrorism Regulations have been recently introduced.
 
This set of laws mentions the fact that any individual who carries out operations involving digital money in Malta will have to apply for a specific license before entering the market. In other words, there is a need for an authorization which is issued by the financial authorities in Malta, in agreement with the specific financial laws in this sense, and entrepreneurs will be licensed under the rules of the Virtual Currencies Act in Malta.
 

The registration of a cryptocurrency company in Malta

 
In the case of a company dealing with virtual money on the Maltese market, a limited liability company can be the proper business structure, with respect to the requirements involved. We remind that the Registry of Companies in Malta is in charge of the incorporation of cryptocurrency companies regardless of the origins of the owners. Specific authorizations are issued by the Maltese institutions for limited liability companies.
 

Maltese crypto license in short steps

 
Obtaining a Maltese crypto license can be an uncomplicated process if you pay attention to the formalities imposed by the authorities. We list some of these to give you an idea of how to get a Maltese cryptocurrency license:
 
  • A cryptocurrency license in Malta can be obtained after establishing a company in this country.
  • Followed by the preparation and planning of officer and shareholder contracts as well as a business plan.
  • Current financial statements are also needed, documents that must be prepared ahead of time.
  • It is necessary to consider financial projections for 3 years and to prepare the necessary documents in this regard.
  • Owners must prepare personal financial statements, as part of the Maltese crypto license application.
  • A VFA agent must be appointed before applying for a Maltese cryptocurrency license. He/she will be in charge of the Financial Instrument Test.
  • Next is the opening of a bank account in Malta, if the activities will be carried out in this country.
  • Anti-money laundering policy must be implemented before starting any activity.
  • Then, it proceeds to the payment of a fee of approximately EUR 12,000 or EUR 25,000 depending on the profit forecast.
 
This short guide can be useful if you are thinking of applying for a crypto license in Malta. We remind you of the support offered by our local agents who have experience in this field and who can help you apply for a cryptocurrency license in Malta.
 

Content of a business plan for obtaining the Maltese crypto license

 
As we mentioned in this article, it is necessary to draft a business plan in order to obtain a cryptocurrency license in Malta. There is a need for a series of important information that must be detailed in this type of business plan, and among these, we mention:
 
  • Policies and procedures in direct relation to compliance management must be mentioned, as well as the person who deals with this.
  • The implementation of anti-money laundering policies must be detailed in this business plan, as well as the know-your-customer procedures so important for obtaining the Maltese crypto license.
  • The management of risk and the person in charge of implementing this policy are other aspects to take into account when creating the business plan.
  • The operational structure, in the case of the board of managers, responsibilities, and reporting must be found in the plan mentioned above.
  • A cryptocurrency company in Malta requires a solid marketing plan to be able to stand out in the market with the services offered. You can also add such information.
  • The conduct of business is another aspect to take into account. You must detail the situations of conflict of interest, selling procedures, and sales methods.
  • Information about the VFA agent, outsourcing arrangements, plus other procedures related to this business that may be relevant in obtaining the Maltese cryptocurrency license will also be detailed.
 
With the help of our company formation agents in Malta, you can draft a business plan that complies with the above specifications. We offer you our experience to be able to obtain a crypto exchange license in Malta, in a short and fast time.
 

Managers of a crypto exchange business

 
A crypto exchange business must be managed by at least two people who demonstrate that they have sufficient knowledge in the field and understand the responsibilities of the company. We emphasize that the VFA regulations must be carefully analyzed to be able to put this type of business on the market.
 
Please do not hesitate to contact our team of company formation agents in Malta and ask for comprehensive information about how to apply and obtain the crypto exchange license in Malta. The requirements can be entirely explained by our team of advisors at any time.
 
 

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