Further to the provisions of Article 62 of the VFA Act, which relates to the licensing requirements of VFA service providers, any person seeking to provide services in relation to Virtual Financial Assets (VFA) require to commence a VFA Service Licence application process by not later than the 31st October 2019. The Circular sets out the procedures needed to be followed to apply for the VFA Service Licence or to terminate the provision of VFA services before the expiry of the transitory period.

The VFA Service Licence application process is also established. The Service Provider must begin by submitting a letter of intent to the MFSA, which will include:

  • A comprehensive description of the whole structure;
  • The VFA’s Service licensing requirements and identifying the persons proposed to hold key positions;
  • A legal opinion which confirms that the VFA service does not fall within the scope of a traditional financial instrument.

Upon submitting this letter, the Authority may then schedule a preliminary meeting with the applicant Service Provider along with the VFA Agent. The applicant must then submit the application form within 60 days. 

It is also highlighted that any prospective applicants may only begin with the communication and submissions to the Authority with regards to the application process through a registered VFA Agent. 

Any VFA Service Provider who is currently providing services and has no intention of submitting an application for the VFA Service License, are required to terminate their operations and submit a notification to the Authority about this termination by no later than 31st October 2019. The notification must include:

  • A signed declaration by the Board of the entity confirming that it is no longer providing a VFA service;
  • A signed declaration confirming that the entity has no outstanding obligations towards its clients.

The entity providing VFA services and not seeking to apply for the VFA Service License or fails to apply for the VFA Service License, will be subject to regulatory action being taken by the Authority, should it remain operating after the 31st October 2019. 

 

Jonathan Galea

Jonathan Galea


At BCA Ltd., we provide regulatory clarity and support, along with blockchain development services for any blockchain company. Simply put, we offer a one-stop shop for your blockchain business. I am also a co-founder of BitMalta, a non-profit organization that was one of initiators and advisors to Maltese government in creating a blockchain regulatory framework.