Permissions

Class 1 VFA License – Authorised to receive and transmit orders and, or provide investment advice in relation to one or more virtual financial assets and, or the placing of virtual financial assets.

Class 2 VFA License – Authorised to provide any VFA service and to hold or control clients’ funds, but not to operate a VFA exchange or deal with their own account.

Class 3 VFA License – Authorised to provide any VFA service and to hold or control clients’ funds, but not to operate a VFA exchange.

Class 4 VFA License – Authorised to operate a VFA exchange and to hold or control clients’ funds, virtual financial assets and, or private cryptographic keys and custodian or nominee services solely in relation to the operation and activities of such VFA exchange.

Capital Requirement

Class 1 VFA License – EUR 50,000 or EUR 25,000 with Professional Indemnity Insurance/ VFA Insurance

Class 2 VFA License – EUR 125,000

Class 3 VFA License – EUR 730,000

Class 4 VFA License – EUR 730,000

If the applicant is a natural person, physical presence in Malta is required. Where the applicant is a legal person, it may be constituted in Malta, or, if constituted abroad in a recognized jurisdiction, it shall establish a branch in Malta.

Desfran shall seek to understand your business activities and goals to assist with your business plan drafting that best encompasses this whilst still being compliant to the prevailing regulations. Desfran shall also advise on the possible questions that might be posed by the regulator.

• Both individual or company may apply, physical presence is required for individual application.
• The company must have at least two directors, a local secretary, and a local registered address in which Desfran shall assist.
• The company must have a compliance officer, a money laundering reporting officer and a risk manager.
• Desfran shall assist to submit the online VFA Service Provider Application Form along with the completed annexes detailing the unitholding structure, business plan and declaration sheet. The form also requires additional supporting documents, namely the comprehensive list of corporate documents.

Due Diligence is necessary to formally verify the identity of all clients of the firm. The following documents are required to conduct due diligence for the license application:

• A copy of the photo page of the passport ceritifed by a notary public for each director and shareholder;
• A copy of proof of address (issued within the last 3 months) by a notary public for each director and shareholder;
• Curriculum Vitae (CV);
• Business Plan;
• Financial Forecast;
• Organisation Chart;
• For company directorship or shareholdership, a certified copy of the constitution documents of the company and above details on each director and shareholder of the company;
• Other supporting document when necessary.

Please note for a company listed on a major stock exchange or subject to regulatory supervision in a country with equivalent AML regulations to Malta, evidence of such listing or regulation will suffice in place of the above information. Where the directors to be appointed are employees of such a listed or regulated company, a certified passport copy and confirmation of employment (to include position) will suffice.

The Malta Financial Services Authority (MFSA) is the single regulator of financial services in Malta. The MFSA regulates banking, financial institutions, insurance companies and insurance intermediaries, investment services companies and collective investment schemes, securities markets, recognized investment exchanges, trust management companies, company services providers and pension schemes. Since 2018, it is also responsible for regulating Virtual Financial Assets.