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Implementation of the regulatory framework - VFA Circular

On the 25th of January the Malta Financial Services Authority (“MFSA”) issued an update on the Virtual Financial Assets Framework (the “Circular”) to update the public on the progress of the implementation of the regulatory framework.

The MFSA has announced that it expects to publish Chapter 3 in the coming weeks, which follows on from the updated Glossary of Terms announced recently. Both Chapter 1, Rules for VFA Agents, and Chapter 2, Rules for Issuers of Virtual Financial Assets, were published back in October 2018.

The MFSA has also issued an updated Frequently Asked Questions on the Virtual Financial Assets Framework in response to the numerous queries with respect to the VFA Regulatory Framework.

A highlight of the Circular was the announcement that the updated version of the Financial Instrument Test has been issued. The news is particularly important for those currently preparing to issue Virtual Financial Assets as it includes a number of changes.

The MFSA confirmed that it has received a number of applications for the registration of VFA Agents and these are currently being processed on a first come first serve basis. Applications may be submitted through the Apply for Authorisation Page on the MFSA website.

Upon the registration of the first VFA Agents, the MFSA shall be in a position to start accepting and considering requests for Whitepaper approval for persons not operating under the transitory provision and applications for a VFA Services Licence.