The crypto space has recently been facing many issues with regulatory authorities across the globe. Right from the United States to India, crypto companies are now being heavily regularised.
Especially, after the market collapse in 2018, government agencies have become stricter towards the market, putting stringent laws in place for cryptocurrency companies. However, on a positive note, the Malta Financial Services Authority (MFSA) has approved applications by 14 crypto companies in the country.
MFSA released an official statement on Tuesday stating that it has granted in-principle approval to 14 companies who had applied for Virtual Financial Asset (VFA) agents. All of these companies submitted their respective applications in November last year, soon after the Virtual Financial Asset Act, 2018 came into force. These approved companies haven’t yet completed the application process completely, and hence they have been granted only an in-principle approval for agent status.
Dr Christopher Buttigieg, Head of Securities and Markets Supervision at MFSA stated,
“The issuance of these in-principle approvals is an important milestone in the MFSA’s effort at becoming a regulator of excellence in the field of the regulation of crypto assets.”
In spite of the falling markets and extreme bearish trends, the crypto space continued to expand, and that too at an unbelievable 122%. Many big corporations like JPMorgan have launched their own cryptocurrency, while others like IBM are establishing themselves as proven blockchain solution providers for crypto companies.
Apart from traditional cryptocurrency start-ups and crypto exchanges, other supportive industries have also bloomed. One such component of the crypto space is VFA agents. They hold an important role in Malta’s relatively newer crypto and blockchain regulations. Every company in the island country, which intends to sell its digital coins to investors, will mandatorily have to obtain legal approval and financial advice. This is what makes VFA agents extremely important for the market.
According to the country’s Virtual Financial Asset Bill, introduced in June last year, every company is required to appoint a VFA agent. The VFA agents would ensure that compliances are duly met, and confirm, via a joint signing, that the company is not violating any financial services or crypto related regulations. This stipulation has been made mandatory, as the MFSA priority is to protect investors of the crypto space.
The crypto space is being heavily regulated throughout the world. The US Securities and Exchange Commission (SEC) and the US Congress recently announced two new bills focused at regulating the crypto exchanges. Similarly, China and Russia have also laid down stringent regulations on cryptocurrencies and related businesses. In fact, China has a complete ban on Initial Coin Offerings in the country.
However, no matter what, the crypto space will definitely continue to grow and expand. Many experts have suggested that cryptocurrencies are the future of money, and will be the surpass the use of fiat currencies in the next couple of decades. What confirms this fact is the adoption of cryptocurrencies by countries like Russia, who is all set to introduce its own digital token by July 2019. Similarly, crisis-hit countries will continue to increase their use of digital currencies, like what Venezuela is doing to overcome hyperinflation and its worst ever recession.
Apart from this, major business corporations’ keen interest testifies the fact that their researches have shown encouraging result. For instance, VISA Inc. recently stated that it would integrate blockchain technology with its global operations, in order to facilitate payments through digital tokens. Also, the social media giant is about to launch a stablecoin this year, to enhance cross-border payments.