Malta has realized the dream of becoming Blockchain Island with a major announcement by the Malta Financial Services Authority (MFSA) along with the Malta Digital Innovation Authority (MDIA). This announcement brings the island to the forefront of blockchain technology and leads the way for acceptance of the digital currency.
The first Virtual Financial Assets (VFA) agents were approved by the MFSA and the first System Auditors of Innovative Technology Arrangements were accredited by the MDIA. They have a large responsibility for the blockchain industry as they monitor it and act as gatekeepers.
The main tasks of the VFA agents is to assist clients and make applications to the MFSA for them. They will conduct the Financial Instrument Test, which is made up of two layers under the Virtual Financial Assets Act. They are the first line of defense before and following the registration process. Due diligence must be performed to elevate the credibility of the island to the main choice for jurisdiction of those who operate in the space.
The MFSA has already received 350 notifications from companies within the blockchain industry. Now that VFA agents are in place, the process for acquiring licenses can begin.
The system auditors will provide reviews on the system and develop a report based on the guidelines of the MDIA. There are five principles for the objectives of the organization, which include security, availability, processing integrity, confidentiality and protection of personal data.
The task of the auditors is to assist the MDIA during the clients’ certification on Innovative Technological Arrangements and Services platforms.
Bridging Between MFSA and MDIA
The system auditors will also act as a bridge between the two authorities for companies that deal in virtual currency. They will provide a guarantee that the arrangements with technology have the required criteria and standards and to ensure best practices to provide integrity in the market. This step will also ensure protection of consumers and financial stability.
Much activity has been happening since the laws went into effect in November 2018 to ensure the protection of the jurisdiction. Both authorities have worked together to prepare for the coming process of licensing.
Malta is one step closer to becoming the first jurisdiction globally to issue a license in a regulated situation so that businesses can thrive. Malta has worked to position itself in this industry to instill trust in the digital technology sphere while providing both consumers and investors with peace of mind.