Hong Kong-based digital assets exchange and app, Crypto.com has today announced that the cryptocurrency platform will receive in-principle approvals for a Financial Institution License, and a Class 3 Virtual Financial Assets (VFA) License from the Malta Financial Services Authority.
A Class 3 VFA License authorizes exchanges to provide “execution of orders on behalf of other persons; “custodian or nominee services; and “dealing on own account.” On the other hand, a Financial Institution License allows them to offer payment services and issue electronic money.
According to a release shared with AMBCrypto, Crypto.com has been working closely with the Malta regulator to achieve the aforementioned approvals in-principle. To date, the firm has been operating under the transitory provisions of the Virtual Financial Assets Act in Malta.
Malta is one of the few jurisdictions in the European Union that has developed a clear digital assets regulatory framework to protect investors. Much like the Seychelles and Belize which offer crypto-friendly regulations. However, crypto investors argue that a liberal approach in terms of regulations could offer less protection to users and may even have fewer checks on money laundering.
Recently though some nations have taken their unique approach to attract crypto firms. This year, Bahrain, Gibraltar, including Malta began offering their own specific rules such as a regulatory sandbox and perks like tax exemptions for crypto firms.
Within the EU, Belarus made news by launching its first legal cryptocurrency exchange service. However, it had begun its talks on crypto-focused initiatives back in 2018 itself. At the time the Belarusian government made all activities related to cryptocurrencies legal and tax-free until 2023.
However, Crypto.com believed that such regulatory compliance would help it to protect users’ funds, especially after fulfilling the on-going obligations of the applicable local and international laws as well as regulations. Co-founder and CEO of Crypto.com, Kris Marszalek said that while receiving Malta’s in-principle approval for the licenses was “an important milestone,” the company looked forward to securing licenses in more markets throughout 2021.