MFSA issues consultation with the financial services industry regarding VFA Regulations to be issued under the VFA Act.

The Malta Financial Services Authority ("MFSA") issued a consultation paper addressed to the financial services industry with regards to the Virtual Financial Assets Regulations to be issued under the Virtual Financial Assets Act ("VFA Act")

The aim of the proposed Regulations is to safeguard financial stability, promote market integrity and ensure investor protection by introducing the following:

1. Exemptions: The proposed Regulations will set out a list of persons who shall be exempt from the requirement of a VFA services licence in terms of the VFA Act, some exemptions may be automatically applicable, others will need to be notified to the MFSA prior to their application, while others shall be subject to a determination in writing by the MFSA. 
2. Fees: The proposed Regulations will set out the respective application and supervisory fees for licence holders of VFA Agents, which fees take into account the respective risks posed.
3. Control of Assets: The proposed Regulations introduce additional requirements with respect to the holding and/or controlling of clients' monies and/or controlling assets.
4. Administrative Penalties and Appeal:Persons falling within the scope of the proposed Regulations who fail to comply with any of the provisions of the proposed Regulations will be subject to an administrative penalty and other administrative measures. 

The consultation period is open to the public from the 4th July 2018.