Malta Cryptocurrency Exchanges

GDP GROWTH: 6.6% in 2017 REGULATORS: Malta Financial Services Authority, Malta Digital Innovation Authority TIMEZONE:Central European Time Zone (UTC+01:00) FINANCIAL SERVICES FRAMEWORK:EU and OECD approved FINANCIAL SECTOR:25% Annual Growth FINANCIAL TECHNOLOGY LAW: First in World

• Rules and Documentation in English
• Consumer Protection, Market Integrity and Financial Stability
• Regulator’s Open-Door Policy
• Reputable, but Cost-Effective Jurisdiction
• Attractive Corporate Tax Regime

The legal framework specifically designed by the Government of Malta to regulate Virtual Financial Assets (VFAs) and Virtual Financial Assets related services (‘VFA Services’) including the operation of a crypto exchange comprises a series of three laws: 

•     the Malta Digital Innovation Authority Act (MDIA Act) establishing the Malta Digital Innovation Authority (MDIA); 
•     Innovative Technology Arrangements and Services Act (ITAS Act) providing for registration of technology service providers and the certification of technology arrangements; and 
•     the Virtual Financial Assets Act (VFAA) mainly regulating initial coin offerings (ICOs), VFA service providers and VFA agents. 

Under the VFAA, no person can provide a VFA service in or from within Malta unless licenced by the Malta Financial Services Authority (MFSA) prior to commencing operations. The VFAA regulates a whole range of service providers and services provided in relation to VFAs covering reception and transmission of orders, execution of order on behalf of others, dealing on own account, portfolio management, custodian and nominee services, investment advice, VFAs placements and the operation of a VFA exchange. 
The MFSA is the lead regulator for VFAs and VFA service providers. However, certain innovative technology arrangements, including DLTs and smart contracts may be referred to the MDIA for further certification.
 

• Undertake Fit & Proper Test
• Physical Presence
• Appoint a VFA Agent
• Initial Share Capital,
• Capital Adequacy and Liquidity Requirement
• Undertake Financial Instrument Test