MFSA asks Traders to Wait for VFAA to Become Effective
The Financial services regulatory body in Malta has requested its blockchain companies to wait until the passage of the new regulatory framework before requesting approvals.
The Malta Financial Services Authority (MFSA) has issued a statement that the just approved new Virtual Financial Assets Act (VFAA) requires the construction of the new framework of rules and regulations. Hence, until this regulatory framework is constituted, MFSA requested members to desist from further activities such as authorizations as well as approvals.
The Act will allow the authorities to regulate Distributed Ledger Technology or DLT. By the act of approving the Act, Malta’s government became the first in the world to provide legal safety for consumers of blockchain technology and the operations of such companies.
In the past few weeks, according to media reports, MSFA has been engaging directly with the different stakeholders of the industry. It has been monitoring feedback from them about the use case of the new regulation. As per the new Act, there would be revisions in terms of VFAA issues including administrative penalties as well as fees.
To help users to adapt to the needs of the new Act, MFSA is considering the introduction of a new rulebook based on the given passed laws. In this book, the first chapter is accessible until the end of June. The institutional regulator will follow up this with two more chapters, the reports state. In both of these supplements, the VFAA services and its providers are given complete focus. With the termination of the consultation period, MFSA will then issue final regulations as well as rules with VFAA, to enforce the new legislative law.
The regulators have propounded that operators should monitor such of the regulatory announcements which are in relation to the financial assets and its framework. As the processes change and updates are provided, the framework will acquire strong enforcement capabilities. Users will then receive full fledge services and approvals, authorizations, as soon as the viability of the framework is tested for its implementation.
Focus on bringing world Crypto users to Malta
The archipelago fancies itself as a great supporter of cryptocurrency use case and transactions in the world. Its leaders are focused on building the appropriate infrastructure, technology, and related framework which will declare Malta a world-class crypto trading center. Towards this purpose the ‘Blockchain Island,’ has enacted necessary laws on an ongoing process, such that these laws remain relevant to the industry.
It also boasts of high concentration of crypto technologies companies, exchanges, and related service providers. Hence, Malta is home to exchanges such as OKex, BitBay, and Binance.
In turn, the companies and technology setups in this area are aiming at further expansion, driving further development in the thriving crypto environment. For example, Binance has announced that it will launch its own blockchain-bank where tokens will be owned. Named ‘Founders Bank’ it will have on its owner’s digital token investors, based out of Malta. In the long run, Founders Bank expects to become the first community-owned decentralized bank in the world.