Crypto Exchange Licence Process

Onboarding by Gonzi & Associates, Advocates

First you will be onboarded by the Firm. Following onboarding, our expert lawyers will advise and guide you through the registration process, assisting where necessary in the preparation of the business plan and company policies and procedures.

Appointment of VFA Agent & Key Functionaries

Preliminarily, an applicant should appoint a VFA Agent who shall be responsible for the submission of the licence application with the Malta Financial Services Authority ('MFSA') on behalf of the applicant. Other Key Functionaries should be engaged as early on in the process as possible. For instance, a licence application would not be deemed complete if it is not accompanied by a 'Systems Audit Report' drawn by a 'Systems Auditor'. Thus, it is beneficial for an applicant to ensure that the applicable Key Functionaries are identified and engaged without undue delay.

Licence Application Phase 1 - Statement of Intent

The application process consists of three phases, (i) phase one being the preparatory phase, (ii) phase two being the pre-licensing phase and (iii) phase three being the post-licensing / pre-commencement of business phase. Phase 1 consists in the submission of a Statement of Intent in which the applicant notifies the MFSA of its intention to apply for a VFA Services Licence. The Statement of Intent should include a comprehensive description of the proposed structure; the VFA service or services for which licensing is being sought, identifying the persons proposed to hold key positions thereto; and a legal opinion that the proposed activity does not fall within the scope of traditional financial services legislation. Gonzi & Associates, Advocates, may assist with the provision of such legal opinion.

Licence Application Phase 1 - Preliminary Meeting

Upon receipt of the Statement of Intent, the MFSA schedules a preliminary meeting with the applicant, following which the applicant shall have 60 days within which to submit a full application form with any supporting documentation as required.

Licence Application Phase 2 - In Principal Approval

Upon submission of a complete application, the MFSA will initiate a review of the application and the supporting documentation. Once it is satisfied with the information set out in the application, the MFSA will issue an 'In Principle' approval which would be valid for three months from the date of issue. During this period, the applicant will have to finalise any outstanding issues raised during the application process, finalise any pre-licensing conditions, and submit the original copies of the final application form together with all supporting documentation.

Application Licence Phase 3 - Post-Licensing

Upon satisfaction of any pre-licensing conditions, the MFSA will issue a VFA Services Licence. Licence holders may be required to satisfy, within set time frames, a number of post-licencing matters, as the MFSA may determine on a case by case basis. In any case, a Licence Holder must commence business within twelve months from the date of the licence's issue.