It has taken two years for the Malta Financial Services Authority (MFSA) to start issuing licenses – after the eagerly-anticipated cryptocurrency laws were introduced in 2018. Crypto.com has, in principle, been authorised two licenses by the MFSA. These licenses will enable Crypto.com to provide services on two fronts. The first license, a Financial Institutions License, will allow them to provide payment services and enable them to issue electronic money to customers. The second license, a Class 3 Virtual Financial Assets license, will allow Crypto.com to engage in investment management services. This extends to professional and rookie traders, with focus on custody and trading oversight.
Many have been left wondering when Malta would implement the proposed regulatory framework for crypto trading activities. For some time now, Maltese regulations have been steadfast in facilitating blockchain development. However, ambiguous statements and a lack of direction, left many crypto startups with no choice but to pack up and look elsewhere. Crypto licenses have been few and far between – actually non-existent until recently.
The news that Crypto.com has received these regulatory crypto approvals is great news for the industry at large. A fairly lethargic approach by Maltese officials seems to have been shrugged off. It is only logical to think that many other firms may be pursuing approval, pending official clearance, and may yet spur growth in Malta within the crypto community. This has been backed up by recent statements by the Maltese government. They have committed to pursuing an all-encompassing approach when it comes to the regulation of the digital economy.