van Cutsem Wittamer Marnef & Partners​ LEADING GLOBAL NETWORK MACKRELL INTERNATIONAL IN CHAMBERS GUIDE AS FOR EIGHTH YEAR RUNNING.

VFA Agent Services

In Malta’s recent efforts to regulate the field of cryptocurrencies, blockchain and DLT, Malta has enacted three new legislations, one of which is the Virtual Financial Assets Act (VFA Act) which regulates the issuance and the services provided in relation to cryptocurrencies classified as Virtual Financial Assets (VFAs).

The VFA Act requires the registration of the whitepaper with the authority in relation to any issue of VFAs and the submission of the application for a licence to provide services in relation to VFAs to be made through a VFA Agent. The VFA Agent is required if the cryptocurrencies issued or in relation to which the services are provided are VFAs.

A VFA Agent is required to be registered with the MFSA in terms of the VFA Act and may be a person falling under any of the following:

  1. Advocate, accountant or auditor; or

  2. A firm of advocates, accountants or auditors, or corporate services providers;

  3. A legal organisation which is wholly owned and controlled by persons referred to in paragraphs (1) or (2); or

  4. Any other class of persons holding authorisations, qualifications and, or experience deemed by the MFSA as possessing suitable expertise to exercise the functions listed under article 7 and/or article 14 of the VFA Act.

VFA Agent

For Service Providers

In terms of article 14 of the VFA Act, an application for a VFA Licence under the VFA Act shall be made solely through a VFA agent which is duly registered in terms of the VFA Act in the form and manner required by MFSA.

Zerafa.io Ltd has been established and is duly registered by the MFSA as a VFA Agent to assist its clients in submitting an application for a VFA Licence to provide services in relation to VFAs. For more information regarding the services that Zerafa.io Ltd offers, please visit www.zerafa.io.

For Issuers

Article 7 of the VFA Act requires any issuer of VFAs in or from within Malta to appoint, and have at all times in place, a VFA agent who shall be registered with the MFSA under the VFA Act. Moreover, article 3 of the VFA Act requires such an issuer of VFAs to draw up and register a whitepaper with the MFSA, which must be endorsed by the VFA Agent confirming its compliance with the VFA Act.

VFA Compliance

By virtue of the rules and regulations issued by the MFSA under the VFA Act, a VFA Agent may, subject to being so proposed by a VFA Licence holder, be appointed as Compliance Officer with the VFA Licence holder for which it had acted as VFA Agent at application stage.

To this end, Zerafa.io Ltd is duly registered by the MFSA as a VFA Agent and is in a position to provide compliance services to VFA Licence holders providing services relating to VFAs.

Please visit www.zerafa.io for more detailed information on the compliance services that are offered.

Key contacts

VIEW ALLVIEW ALL

RELATED NEWS

Sports Tokens in Malta

What are Sports Tokens? The ever-expanding world of cryptocurrency has recently taken its turn to enter into the popular and lucrative world of sport. News recently struck that a transfer of the highly renowned and talented football player Lionel Read more

What is Product Governance?

The notion behind product governance stems from the fact that investment firms which manufacture and distribute financial instruments known as products, shall act in the best interests of their investors at all stages of a product’s development Read more

Variation and Revocation of Trusts

The main difference between a variation and a revocation of a trust is that, whilst variation allows the power to revoke certain terms under a trust and introduce new ones, revocation allows the power to terminate the rights under a trust indefini Read more

The Beneficiaries in a Trust: Who is the Beneficiary?

There is no trust without a trustee. However, there is another essential party to the trust, without which the trust would be invalid: the beneficiary. The purpose behind creating a trust is to provide certain benefits to the beneficiary, that is, Read more

MiFID II suitability areas requiring improvement

The European Securities and Markets Authority (“ESMA”) published the results of the 2020 Common Supervisory Action (“CSA”) on MiFID II suitability requirements noting inter alia, that on the whole, firms do comply with the essential elemen Read more

The Duties of the Trustee

In analysing the duties of the trustee, it is fundamental to refer to article 21 of the Trusts and Trustees Act (Chapter 331 of the Laws of Malta) (the “TTA”) which lays down the fundamental duties of the trustee. Article 21(1) of the TTA refl Read more

A comparison between the MiCA Regualtion and the VFA Act

The scope of the Virtual Financial Assets Act, Chapter 590 of the Laws of Malta (“VFA Act”), is largely aligned with the Regulation of the European Parliament and of the Council on Markets in Crypto-Assets (“MiCA Regulation”), the latter a Read more

Updated Rulebook for Maltese Investment Firms

On the 5th August 2021, the Malta Financial Services Authority (“MFSA“) issued a Circular reminding relevant entities that the Investment Firms Regulation and Directive (the “IFRD Package“) came into force on the 26th June Read more