Late last year, the Malta Financial Services Authority (the
"MFSA") extended its series titled "The Nature and
Art of Financial Supervision" by issuing the second volume of
the same, this time targeting virtual financial assets ("VFAs"), VFA
agents, providers and issuers. The aim of the document is to
provide an overview of the Virtual Financial Assets Act (Chapter
590 of the Laws of Malta) and the manner this is being implemented
in Malta. The key takeaways from the document may be found
below.
On VFA Agents
The document outlines the manner VFA agents were initially
authorized, outlining the aforementioned as being the primary line
of defence with regards to the vetting of prospective VFA
issuers and service providers in Malta. It was also outlined
that the MFSA conducted inspections on select VFA agents, with the
main focus being on assessing the efficacy of client onboarding,
due diligence, governance and the carrying out of fitness and
properness assessments.
