The Malta Financial Services Authority ("MFSA") has today issued a Circular to Virtual Financial Asset Service Providers (the "Circular") addressed to those persons availing themselves of the transitory provision set out in Article 62 of the Virtual Financial Asset ("VFA") Act and who are required to commence their VFA Services License application process by not later than the 31st of October 2019.
1. VFA Services License Application Process
In order to commence the application process, a letter of intent shall be submitted to the MFSA by the registered VFA Agent and which letter shall include informationon the proposed structure, proposed key individuals and a legal opinion that the proposed services do not fall within the scope of traditional financial services legislation. Following receipt of this letter, the MFSA will schedule a preliminary meeting with the applicant and then the applicant has sixty days to submit the application form together with the required supporting documentation.
2. Cessation process for persons operating under the transitory provision
On the other hand, VFA Service Providers who intend to cease their operations shall submit a notification to the MFSA by not later than the 31st October 2019. This notification shall be accompanied with a declaration by the board of directors that no VFA service in or from Malta is being provided and a signed confirmation that the entity has no obligations towards its clients in this regard.
The Circular also reminds VFA Service Providers operating under this transitory provision, that failure to commence the application process or to submit their notification of cessation of operations by the 31st of October 2019, may result in regulatory action being taken by the MFSA.
Please feel free to contact us if you require further information in relation to this Circular.