Crypto.com, a cryptocurrency exchange and debit card provider, has been approved by the Maltese government’s main regulatory agency.
According to the announcement on November 24, the Malta Financial Services Authority (MFSA) has granted Crypto.com two financial licenses: a financial institution license and a type 3 virtual financial asset (VFA) license.
The financial institution license officially enables Crypto.com to provide payment services and issue electronic money. Category 3 VFA license allows Crypto.com to provide investment management services, custody and trading to professional and non-professional investors.
According to the announcement, after the MFSA approved the first batch of VFA agents in May 2019, Crypto.com became one of the first batch of encryption companies to obtain MFSA regulatory approval. Prior to obtaining these licenses, Crypto.com was already operating under the temporary provisions of the Malta VFA Act.
Crypto.com co-founder and CEO Kris Marszalek said the company hopes to get more regulatory approvals in different markets next year.
Malta is widely known as the “blockchain island” in the crypto community, and the country has been actively working to introduce crypto-related regulations.
In 2018, the Maltese government promulgated three laws to establish a regulatory framework for cryptocurrency and reiterated the country’s emphasis on the development of blockchain and the crypto industry. However, according to reports, due to the apparent lack of regulatory clarity, many industry startups have to leave the country, and as of April 2020, the MFSA has not issued any cryptocurrency licenses.
In July 2020, the Maltese government claimed that it had abandoned its once superior blockchain policy and adopted a more comprehensive approach to regulating the digital economy.
