License to exchange cryptocurrencies in Malta
Malta is a country that has become a real “blockchain island”, has become a haven for companies working in the field of cryptocurrencies and distributed ledger technology on legal grounds.
In 2018, Malta became the first country in the world to provide the necessary legal framework for the functioning of the crypto-currency sector, after the adoption of a number of legislative […]
They regulate the areas of licensing, as well as the procedure for providing a number of services, including:
1. ACCEPTANCE AND TRANSFER OF PAYMENTS.
5. STORAGE SERVICE / NOMINAL SERVICE.
2. IMPLEMENTATION OF ORDERS FROM THIRD PARTIES.
6. PROVIDING INVESTMENT RECOMMENDATIONS.
3. CARRYING OUT TRANSACTIONS AT THE EXPENSE OF YOUR COMPANY.
7. PUBLICATION OF CRYPTO ASSETS.
4. PORTFOLIO MANAGEMENT.
8. ACTIVITIES WITH CRYPTO EXCHANGERS AND EXCHANGES.
There are 4 main types of licenses for carrying out activities in the field of cryptocurrencies
License class 1.
The share capital is 50,000 EUR or 25,000 EUR with Professional Indemnity Insurance (PII). Having a Class 1 license allows you to receive and transmit orders and / or provide investment recommendations in relation to one or more virtual financial assets and / or placement of virtual financial assets. Holders of such a license do not have the right to own or control clients’ assets or money. Suitable for providing financial advice.
License class 2.
The amount of the authorized capital is 125,000 EUR. The Class 2 license allows you to provide any VFA services, but not to engage in VFA exchange exchange or make transactions. Holders of this license may hold or control customer funds in connection with the provision of VFA services. Suitable for providing wallets, P2P exchange, asset management.
License class 3.
The amount of the authorized capital is 730,000 EUR. Class 3 makes it possible to provide any VFA services, but not engage in VFA exchange exchange. Holders of this license may hold or control customer funds based on the provision of the VFA service. Suitable for OTC traders (Over-the-Counter, over-the-counter trading), over-the-counter transactions.
License class 4.
The amount of the authorized capital is 730,000 EUR. The most comprehensive Class 4 license entitles companies to operate the VFA exchange and hold or control customer money, virtual financial assets and/or private cryptographic keys. Suitable for any type of crypto exchange.
Basic requirements for the company
|
Authorized share capital |
from 125,000 to 730,000 EUR |
|
Supervisory fee |
Depending on the type of license (up to 50,000 EUR) |
|
Income tax |
35% |
|
Requirements for board members and geographical location |
The company must have at least 2 directors, an AML officer, a risk manager and an auditor. The director must have documented professional experience in the financial sector, an appropriate educational level and a high professional reputation. The individual must be located in Malta. A legal entity can be registered in Malta or abroad (not in an offshore country), but it must necessarily have its own branch in Malta. |
|
Office availability |
Local registered office required |
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Requirements for an annual audit |
Mandatory submission of annual reports of external auditors to government agencies. |
|
Minimum document requirements for applying for a license |
1) An extended resume of the director, members of the board and employees; 2) Certificate of no criminal record for each of the above; 3) Office lease agreement; 4) Организационная структура компании; 5) Charter; 6) Detailed business plan describing the activities of the company (preferably with a detailed financial forecast for at least 3 years); 7) AML/KYC internal procedural rules and policies; 8) Confirmation of the contribution of the authorized capital. |
Services offered by us within the framework of obtaining a license.
LEGAL ADVICE ON THE POSSIBILITY OF OBTAINING A LICENSE, TAXATION, OPENING A BANK ACCOUNT
SEARCH AND HIRING STAFF
FULL LEGAL SUPPORT FOR COMPANY REGISTRATION
ASSISTANCE IN PREPARING DOCUMENTS FOR OBTAINING A LICENSE:
- ✔ legal analysis of the prepared documentation before filing an application;
- ✔ translation and notarization;
- ✔ preparation of a full package of documents, filling out an application and support when submitting to the MFSA;
- ✔ preparation of procedural documentation in accordance with the requirements of AML / KYC and other company policies;
OPENING ACCOUNT WITH PAYMENT SYSTEM OR BANK
COORDINATION WITH MFSA DURING LICENSE APPLICATION PROCESS
FORMING A LEGAL ADDRESS
ACCOUNTING AND LEGAL SUPPORT OF THE COMPANY
Stages of obtaining a license to conduct activities with cryptocurrency
First of all, it is worth deciding on the direction of your company’s activity, the expected amounts of income and the operations performed in order to correctly calculate all the nuances. From these facts will depend on the size of the initial authorized capital, the amount of the annual fee and additional costs that may arise during the activity.
STAGE 1
REGISTRATION OF A COMPANY, REGISTRATION OF A LEGAL ADDRESS, HIRE EMPLOYEES.
STAGE 2
SELECTION OF THE OPTIMAL FINANCIAL INSTITUTION FOR THE PURPOSE OF OPENING ACCOUNT FOR THE FORMATION OF AUTHORIZED CAPITAL AND OPENING SUCH ACCOUNT.
STAGE 3
PREPARATION OF DOCUMENTS FOR MFSA AND OBTAINING A CRYPTOLICENSE.
Documentation
- Malta Digital Innovation Authority Act 2018
- Innovative Technology Arrangements and Services Act 2018
- Virtual Financial Assets Act 2018
