A virtual Asset Service Provider (VASP) license in Malta is required for foreign investors who want to set up a cryptocurrency company and trade virtual money on the international market. In order to understand the requirements for obtaining the crypto exchange license in Malta, we suggest you talk to our team of company incorporation specialists in Malta. They can also handle the registration procedure for all types of companies available in this country.
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What are the conditions for obtaining a Virtual Asset Service Provider (VASP) license in Malta?
In order to deal with virtual financial assets in Malta, it is necessary to observe the requirements for obtaining the crypto exchange license like the following:
- a VFA (virtual financial assets) agent needs to be appointed in order to apply for the necessary license;
- the application needs to be sustained by complete information about the system, applications, and security access and by a programme of operations;
- a declaration made by the VFA agent must sustain the fact that the applicant is qualified for cryptocurrency exchange in Malta;
- a crypto exchange license is used only for digital money operations and no additional activities.
Knowing the rules for opening a company in Malta, or for obtaining the crypto exchange license will help an entrepreneur establish rapidly a crypto company in Malta. Feel free to get in touch with our team and find out how we can help you set up a company in Malta in the cryptocurrency field.
Fees for obtaining the crypto exchange license in Malta
The application for obtaining the crypto exchange license is subject to a fee of EUR 12,000. Also, for profits of EUR 1 million, a fee of EUR 25,000 is applicable. We remind you that the VFA Class 4 license is the most important one and allows an entrepreneur to deal and control the money, the virtual financial assets, and the cryptographic keys of an individual involved in digital money businesses in Malta.
Crypto tax rates in Malta
Both crypto companies in Malta and individuals using digital money must consider the charging system. Here are some interesting aspects:
- Crypto companies in Malta providing mining, trading, or blockchain services are obliged to pay a 35% tax rate. However, such tax can be reduced to 5% or eliminated in certain conditions.
- Rates between 15% and 35% apply to individuals operating cryptocurrency in Malta. In this case, the tax applies depending on the annual income.
Maltese crypto license in short steps
Obtaining a Maltese crypto license can be an uncomplicated process if you pay attention to the formalities imposed by the authorities. We list some of these to give you an idea of how to get a Maltese cryptocurrency license:
- A cryptocurrency license in Malta can be obtained after establishing a company in this country.
- Followed by the preparation and planning of officer and shareholder contracts as well as a business plan.
- Current financial statements are also needed, documents that must be prepared ahead of time.
- It is necessary to consider financial projections for 3 years and to prepare the necessary documents in this regard.
- Owners must prepare personal financial statements, as part of the Maltese crypto license application.
- A VFA agent must be appointed before applying for a Maltese cryptocurrency license. He/she will be in charge of the Financial Instrument Test.
- Next is the opening of a bank account in Malta, if the activities will be carried out in this country.
- Anti-money laundering policy must be implemented before starting any activity.
- Then, it proceeds to the payment of a fee of approximately EUR 12,000 or EUR 25,000 depending on the profit forecast.
This short guide can be useful if you are thinking of applying for a crypto license in Malta. We remind you of the support offered by our local agents who have experience in this field and who can help you apply for a cryptocurrency license in Malta.
Content of a business plan for obtaining the Maltese crypto license
As we mentioned in this article, it is necessary to draft a business plan in order to obtain a cryptocurrency license in Malta. There is a need for a series of important information that must be detailed in this type of business plan, and among these, we mention:
- Policies and procedures in direct relation to compliance management must be mentioned, as well as the person who deals with this.
- The implementation of anti-money laundering policies must be detailed in this business plan, as well as the know-your-customer procedures so important for obtaining the Maltese crypto license.
- The management of risk and the person in charge of implementing this policy are other aspects to take into account when creating the business plan.
- The operational structure, in the case of the board of managers, responsibilities, and reporting must be found in the plan mentioned above.
- A cryptocurrency company in Malta requires a solid marketing plan to be able to stand out in the market with the services offered. You can also add such information.
- The conduct of business is another aspect to take into account. You must detail the situations of conflict of interest, selling procedures, and sales methods.
- Information about the VFA agent, outsourcing arrangements, plus other procedures related to this business that may be relevant in obtaining the Maltese cryptocurrency license will also be detailed.
With the help of our company formation agents in Malta, you can draft a business plan that complies with the above specifications. We offer you our experience to be able to obtain a crypto exchange license in Malta, in a short and fast time.
Pending obligations with a cryptocurrency company in Malta
Those who want to open a cryptocurrency company in Malta must consider risk management and compliance actions and ensure the protection of customers and their investments. Prudential requirements for cover funds, ongoing capital, and initial share capital are also required. In addition, when registering a cryptocurrency company in Malta, you must prepare a set of obligations and rules regarding the conduct of business, the sale and purchase procedures, as well as the settlement of conflicts. If you want guidance in this regard, please talk to one of our local agents. We have experience in this direction, and we can help you.
Preventing the market abuse
Cryptocurrency companies in Malta may be exposed to business crimes like insider dealing cases or market abuse and manipulation. It is good to know that MFSA (Malta Financial Services Authority) deals with such cases if the licensee reports the inappropriate activities in the cryptocurrency sector in Malta. If you would like to know more details about how you can open a company in Malta or about the mandatory conditions for getting the crypto exchange license in Malta, we suggest you talk to our team of consultants at any time.
What is a VFA agent?
The VFA agent can be appointed at the time you wish to apply for the crypto exchange license in Malta. He/she can undertake the Financial Instruments Test necessary to determine the nature of the cryptocurrency company whether it deals with virtual tokens, virtual financial assets, electronic money or other financial tools. The same agent will make sure that the business plan regarding the digital money and the necessary license in this sense are respecting the applicable laws before applying for the needed permit. The MFSA oversees the activities of cryptocurrency companies in Malta and issues the crypto exchange license if all the above-mentioned conditions are entirely respected.
It is good to know that the VFA agent will act as an important contact between the applicant and the financial authorities in Malta when applying for the license. He/she will handle the documents with the relevant authorities and will ensure the business will conform with the newly established and accepted regulations for supervising the activities of the companies dealing with cryptocurrency operations in Malta. Moreover, the same agent will have to make a financial report and submit it to the MFSA on a yearly basis. Find out more details about a VFA agent and his/her responsibilities from our team of consultants in Malta.
What are the provisions of the Virtual Financial Assets Act?
The VFAA or the Virtual Financial Assets Act in Malta provides information about the licensing conditions for establishing the cryptocurrency operations in Malta, plus the rules for ICOs (initial coin offerings). The legal status of a cryptocurrency in Malta is now verified by the Financial Instrument Test (FIT), in order to see if digital money can be controlled as a financial tool. The test will show if the cryptocurrency can be qualified as a virtual token, a financial instrument, or electronic money.
Malta Digital Innovation Authority Act
The Maltese Digital Innovation Authority is a governmental entity which sustains the blockchain techs with the help of a series of policies. The same authority is entitled to collaborate with foreign countries in matters of virtual currency, the creation and the use of blockchain technology, meaning that the digital money must be legally registered before used in Malta. We invite you to talk to our specialists and find out how you can register a company in Malta. Feel free to ask any questions about how you can start a business, including the ones involving initial coin offerings in Malta.
The Innovative Technology Arrangements and Services Act
In order to promote the accountability and transparency of blockchain technology, the authorities in Malta implemented the Innovative Technology Arrangements and Services Act. The distributed ledger technology enters the discussion because it involves the technologies and applications of digital money in Malta which need certain approvals from the Maltese government.
Anti-money laundering legislation in Malta
Once the legislation controlling the virtual currency in Malta was released this year, the Maltese authorities decided to implement anti-money laundering rules and regulations. In this case, the Prevention of Money Laundering and Funding of Terrorism Regulations have been recently introduced.
This set of laws mentions the fact that any individual who carries out operations involving digital money in Malta will have to apply for a specific license before entering the market. In other words, there is a need for authorization that is issued by the financial authorities in Malta, in agreement with the specific financial laws in this sense, and entrepreneurs will be licensed under the rules of the Virtual Currencies Act in Malta.
What does a cryptocurrency broker do?
Crypto-brokers are the intermediaries that make the connection between the cryptocurrency markets, and their sales and purchase by the clients. A crypto-broker in Malta can work on his own if he obtains the necessary license or he/she can set up a company to deal with this type of activity. Regardless of the choice, it is good to keep in mind the following formalities and rules that apply in Malta:
- The Malta Financial Services Authority or MFSA is the authority that controls the financial market and its activities. It provides the necessary licenses for crypto-brokers in Malta.
- It is necessary to detail the platform that will connect the cryptocurrency markets with potential customers. A stable and viable business plan must be submitted to the relevant authorities.
- In the case of opening a crypto brokerage firm, the basic rules are followed. A Virtual Asset Service Provider (VASP) license in Malta is required before activating.
We remind you that our company formation agents in Malta can deal in detail with the registration formalities for crypto-brokers in Malta. Both local and foreign investors can call on our services.
Are there any differences between crypto-brokers in Malta and exchanges?
Crypto-broker in Malta facilitates the sale and purchase of cryptocurrencies with the help of developed and implemented platforms. They can also set the sale and purchase prices without any restrictions. In terms of cryptocurrency exchange, this is a platform where users can trade cryptocurrency without an intermediary and respect the market price. In both cases, there are specific fees that apply to each cryptocurrency transaction.
Learn from our specialists how to register your activities as a crypto-broker in Malta and ask about company formation in Malta.
Crypto-broker services, are an excellent choice for novice investors
If you are planning to open a company in Malta for the first time, then you can choose to register a cryptocurrency broker company and benefit from protection from the beginning. These types of activities are appreciated in the dedicated cryptocurrency market, and the investors at the beginning of the road can make a profit in a fairly fast time. Buying or selling cryptocurrencies is done with the help of dedicated platforms, provided by crypto-brokers in Malta. Here are some advantages in this regard:
- Suitable for a small number of cryptocurrencies.
- The crypto-broker can set the price for buyers and sellers.
- Currency exchanges such as Euro, Dollars, GBP, or Swiss franc are accepted.
- Buying and selling cryptocurrencies are protected by dedicated technology systems.
Regulatory framework benefits in Malta
Malta is an extremely important financial center in Europe and one of the most developed in terms of cryptocurrency. Precisely for these reasons, the authorities continue to improve the legislation and bring to the attention of users proper and clear definitions and provisions. The crypto companies in Malta benefit from a rather advantageous regulatory framework. Here are some important aspects:
- The law offers protection to investors in virtual currency. Security is also offered in the case of ICOs in Malta.
- Many crypto companies and blockchains are attracted to Malta in terms of developing operations because this country is recognized worldwide as an important cryptocurrency center.
- The fact that innovation is present in the digital money sector in Malta can only be a plus, and here, the regulatory framework encourages this. Startup founders can benefit from various advantages in the field, sustained by the legislation.
- Another thing to appreciate and offered by the legislation in Malta regarding cryptocurrency is clarity from a legal point of view. In other words, the rules are well-defined and there are no legal impediments, which is a major advantage.
The future of cryptocurrency in Malta
Because it has implemented a well-defined legal framework, Malta is one of the highly valued countries in the cryptocurrency sector. The fact that the authorities constantly focus on the important aspects of digital money and innovation represents a step forward in this field and business safety. Moreover, Malta continues to develop legislation and clearly define cryptocurrency and blockchains, solidifying its position as “Blockchain Island“, as this country is already known.
Please do not hesitate to contact our team of company formation agents in Malta and ask for comprehensive information about how to apply for and obtain the crypto exchange license in Malta. The requirements for company incorporation in Malta can be entirely explained by our advisors at any time.