Practice Areas > Investment Services, Fintech & Capital Markets > Blockchain & ICOs > VFA Services > Class 3 > Legal Basis
Legal Basis
A Serious Framework for VFA Class 3 Licensing
Article 13 of the Virtual Financial Assets Act (‘VFA Act‘) is the legal basis for Class 3 VFA Licences. According to this article, no person may operate a ‘VFA Service‘ in or from within Malta unless such person is in possession of a valid licence issued by the Malta Financial Services Authority (‘MFSA‘). The VFA Act is complemented by regulations and rules issued thereunder.
The Regulatory Framework
The Regulatory Framework - a Brief Overview
The Law - VFA Act
The Virtual Financial Assets Act is the main act regulating the licensing of Malta-based crypto exchanges. It sets out high level principles of recognition and registration.
The Subsidiary Legislation - VFA Regulations
The VFA Regulations regulate aspects concerning applicable application and supervisory fees as well as matters concerning the safeguarding of client assets and funds (including cryptocurrencies).
The Rules - VFA Rulebook, Chapter 3
Chapter 3 of the VFA Rulebook issued by the Malta Financial Services Authority (MFSA) deals exclusively with ‘VFA Service Providers‘. It also sets out detailed information about matters concerning general authorisation requirements for VFA Service Providers, the licensing process, processes for appointed persons and Key Functionaries, as well as post-licensing ongoing obligations.
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How we can help
Gonzi & Associates, Advcocates, has extensive experience in this field and is able to provide specialised assistance to your business at all stages of the Class 3 licence application procedure, including:
- Malta Company incorporation and registration;
- Drafting legal opinions to establish the legal nature of your services and technologies to determine the applicable legal framework;
- Assistance in the collection & preparation of documentation necessary for licence application submission, including business plan, financial projections and internal policies;
- Drafting Maltese-law aligned T&Cs governing the provision of your services;
- Assisting in the identification and appointment of Key Functionaries, including VFA Agent, Systems Auditor or IT Auditor, Money Laundering Reporting Officer (MLRO), Non-Executive Director/s, Auditor, etc.;
- Providing post-registration follow-up assistance, including advising on applicable annual compliance exercises.
- Registration of your trade mark in the Malta trade mark register and the register of the European Union Intellectual Property Office as necessary;
- Providing general legal advice and assistance as required.