The Virtual Financial Assets Act (Chapter 590 of the Laws of Malta) (the ‘Act’) came into force today, 1 November 2018. The Act regulates the registration of whitepapers by Issuers of Virtual Financial Assets (‘VFAs’), VFA Service Providers and VFA Agents.

The aim of the Act is to achieve investor protection, market integrity and financial stability through regulation that is proportionate and which supports innovation and new technologies. The Act also aims at ensuring that money laundering and financing of terrorism risks in this field are addressed by inter alia designating the mentioned entities as subject persons in terms of PMLFT regulations.

The MFSA’s CEO Mr Joseph Cuschieri remarked that: “The implementation of the VFA Framework is the first step in the MFSA’s vision to become a regulator of excellence in the field of FinTech. In the coming weeks the MFSA will launch its FinTech Strategy which will outline the Authority’s efforts towards supporting a paradigm shift in the way financial services providers interact with their customers, and establishing a holistic and robust FinTech sector for both start-ups and industry incumbents.”

Requests for applications, authorisations and approvals under the Act will be accepted by the MFSA from today onwards through the designated online portal. Initially, the MFSA will be processing applications only in relation to persons seeking to be registered as VFA Agents under the Act.

More details can be found through this link.