Introduction
The Malta Financial Services Authority ("MFSA" or
"the Authority"), the single regulator for financial
services in Malta, identified potential risks and a number of
disadvantages in having the crypto-asset sector operating in a
regulatory vacuum. It was in this context that it was decided to
develop a specific framework for the regulation of crypto-assets in
Malta, designed to protect investors, ensure market integrity
(including the prevention of money laundering and the financing of
terrorism) and safeguard financial soundness.
The approach taken by the Maltese legislator was not to regulate
crypto-assets per se, but rather the persons issuing such assets
and/or providing services in relation thereto, in or from within
Malta. The Virtual Financial Assets Act (Cap 590 of the Laws of
Malta) ('VFAA' or 'the Act') regulates persons
providing intermediary services, inter alia, custodians of
crypto-assets, operation of crypto exchanges, brokerage
