Malta Virtual Financial Asset (VFA) / Cryptocurrency Exchange License

Maltese authorities are building a haven for cryptocurrency exchange business out of Malta.

Often referred to as “Blockchain Island,” Malta has taken the lead in developing a progressive regulatory framework for cryptocurrency related businesses. Those looking to obtain cryptocurrency regulation in the European Union have now set thair radars on Malta as it has become the choice destination for cryptocurrency exchange license seekers in the EU.

When it comes to regulation of the blockchain and cryptocurrency space, Malta is known around the world as one of the pioneering European Union member states. Having established a robust regulatory framework for the regulation of cryptocurrency exchanges, a Malta MFSA cryptocurrency exchange license carries significant prestige throughout Europe and the globe as whole. As most EU member states still struggle in determining how best to regulate cryptocurrency, Malta stands out from the crowd, being light years ahead in this regard.

Registering a Cryptocurrency Exchange License in Malta – How Does it Work?

  • Due to the extensive commitment of both time and resources, we will begin by having a call with your team to provide a general overview of the license application process in Malta
  • Upon signing an engagement letter, we will then have a follow up discussion to discuss milestones, timelines, and complete costs pertaining to obtaining a cryptocurrency license in Malta
  • Once business terms have been agreed upon we’ll kick off the process by incorporating a local company in Malta
  • During the incorporation process we’ll prepare a list of documents needed for the license application
  • After all documents have been gathered we’ll then submit your application to the MFSA 
  • Once the application has been received by the MFSA we’ll remain in contact regarding updates and comments

What’s Required to Obtain Requirements a Cryptocurrency Exchange License in Malta?

  • Capital Requirements

The Malta MFSA has set the minimum capital requirement at €730,000. Furthermore, all licensed cryptocurrency exchanges in Malta must keep a minimum amount of liquid assets available that represent a proportion of overhead costs; the specific amount of liquid assets will vary from exchange to exchange.

  • Local Directors & Required Staff

On the technology side, the Malta MFSA requires the appointment of a systems auditor when the technology has been developed in house. Additionally, a Virtual Financial Assets (VFA) agent must also be employed by the exchange. Finally, all licensed cyrptocurrency exchanges in Malta must appoint a board of administration chaired by an individual which is different from the CEO. Additionally,  at least 2 directors, an AML Officer, a Risk Manager and an Auditor must be appointed.

  • Client Funds

All client funds must remain segregated from operational funds, meaning the Malta MFSA prohibits the co-mingling of client deposits with operational funds. This requires that all licensed exchanges have a minimum of 2 bank accounts.

Atomiq Consulting – Your Partner for Cryptocurrency Regulation & Consultation

With a solid background in the online foreign exchange industry and extensive legal experience in the fintech space, Atomiq Consulting is the ideal partner to assist your firm with obtaining a cryptocurrency exchange license in Malta.

If you are interested in applying for a virtual financial asset license in Malta or an alternative jurisdiction then contact us today for independent assessment and solutions.

Interested in Obtaining a Malta Cryptocurrency Exchange License? Contact Us Today!

To learn more about the set up process, fees, and other questions related to a VFA excange license in Malta, don’t hesitate to contact us.

    Malta Cryptocurrency License FAQ

    Is physical Presence in Malta required?

    In the case the applicant is a natural person, physical presence is required. However, if the applicant is a legal entity, then it can be constituted abroad.

    Are there any restrictions on the nationality of applicants?

    There are no restrictions on the nationality of applicants. Everyone without a criminal background is welcome to apply.

    What percent of taxes do international companies in Malta pay?

    Taxes in Malta are currently set at 5%.

    Under what legislation or rules is cyrptocurrency regulated in Malta?

    The rules and guidelins for cryptocurrency regulation in Malta can be sourced to three major bills: the Malta Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act, and the Virtual Financial Asset Act.

    What type of license allows an exchange to legally operate in Malta?

    There are actually 4 license classes in Malta. The license that allows for full exchange permissions if the VFAA Class 4 license.

    Benefits of a Maltese Cryptocurrency Exchange License

    • When compared to other regions in Asia, Hong Kong has the most favorable tax regime
    • An excellent incorporation choice for consulting firms
    • The ideal jurisdiction for any company that does business with China

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