The Malta Financial Services Authority announced in a statement today that it has approved 14 Virtual Financial Asset (VFA) Agents. The approvals are part of a broader effort by Malta to provide regulation for the crypto asset space. According to the statement from the MFSA:
VFA Agents will be assisting issuers and service providers under the Virtual Financial Assets Act, and will be making applications to the MFSA on their behalf.
The VFA Agents will serve as a first line of defence for market integrity and public interest as these agents are required to evaluate their clients’ business plans and fitness and properness prior to submitting an application with the MFSA. The VFA Agents are also subject persons under the Prevention of Money Laundering and Funding of Terrorism Regulations.
More than 250 VFA agent applications were filed after the Virtual Financial Act went into effect last year, but the vast majority were rejected for failing to pass the government’s assessment. 28 managed to apply for licensing, with half of those now being granted approval for registration.
The approved agents will be required to perform due diligence for clients and are expected to work closely with the MFSA by providing pertinent information to regulators “during post-registration supervision.”