Cryptocurrency exchange and app, Crypto.com announced today that it has received major regulatory approvals in Malta. The company has secured a Financial Institution license along with a Class 3 Virtual Financial Assets (VFA) license from the Malta Financial Services Authority (MFSA).
According to the official announcement, the company becomes one of the first crypto platforms in the world to achieve such regulatory approvals in the Maltese jurisdiction. Malta approved cryptocurrency laws in 2018 to regulate the market and since then, the European country developed a clear framework for cryptocurrency platforms to operate under MFSA.
The Financial Institution License obtained by crypto.com allows the company to offer payment services and issue electronic money. Through Class 3 VFA license, crypto.com can offer order execution, custody services, and account dealing to experienced and non-experienced investors.
“We have a long-standing commitment to building a fully regulated business in every market we operate in. Being one of the first cryptocurrency platforms to receive in-principle approval for a Class 3 VFA License and a Financial Institution License is an important milestone and we look forward to securing licenses in more markets throughout 2021,” Kris Marszalek, Co-founder and CEO of Crypto.com, said in a statement.
Expansion in Europe
The company aims to achieve a competitive edge across Europe with new approvals. In recent years, Malta emerged as a hub for international crypto platforms. Leading cryptocurrency exchanges selected Malta as an important destination for global expansion. Malta introduced laws in 2018 to create a regulatory framework for blockchain and crypto companies but many companies were unsure about the exact requirements. Earlier this year, the Maltese authorities announced that the country was considering substantial measures towards the digital economy, including regulation of crypto platforms.
Finance Magnates reported last year about the intent of crypto exchanges to apply for MFSA license. The authority received ‘Letters of Intent’ from 34 prospective digital asset providers, including 21 cryptocurrency exchanges.