Crypto exchange and debit card supplier Crypto.com has obtained major regulatory approvals from the Maltese authorities.
As per a November 24 annoucement, the Malta Financial Services Authority (MFSA), has issued in-principle approval to Crypto.com for 2 financial licenses: a Class 3 Virtual Financial Assets (VFA) License and a Financial Institution License.
Once the firm meets the official conditions, the Financial Institution License will allow Crypto.com to offer payment services and provide electronic money. A Class 3 VFA License allows the firm to provide investment management services, custody and trading to both professional and non-professional investors.
As per the announcement, Crypto.com is one of the first cryptocurrency companies to obtain these regulatory approvals from the MFSA after the authority approved the first VFA Agents in May 2019. Before gaining these licenses, Crypto.com had been operating under the transitory provisions of the VFA Act in Malta.
Crypto.com co-founder and chief executive Kris Marszalek said that the company aims to obtain more regulatory approvals in different countries in 2021.
Famously known as the “blockchain island” in the cryptocurrency community, Malta has been striving to launch crypto-related regulations in the country.
In 2018, the Malta government launched 3 laws to establish a regulatory framework for cryptocurrency, reassuring the nation’s focus on the development of the crypto and blockchain industry.
However, some industry startups reportedly had to leave Malta amid an apparent lack of regulatory clarity, with the MFSA not offering a single cryptocurrency license as of April 2020.
In July 2020, the Malta government said that it was breaking away from its once-popular blockchain agenda to make a more historic move to regulation the digital economy.