What does the name "Malta" evoke for you — the heart of the Mediterranean? Europe's backyard? This island nation in the center of the Mediterranean has been a strategic location since ancient times. Today, for those interested in overseas asset allocation, especially fintech professionals, Malta undoubtedly holds another identity: a digital economy stronghold.
Since joining the EU in 2004, Malta's service and financial sectors have steadily developed, and in the past decade, it has vigorously promoted emerging industries such as digital finance and artificial intelligence. Therefore, readers looking to apply for overseas financial licenses should pay special attention to Malta's blockchain, which is certainly a business worth focusing on.
So, what are the characteristics of Malta's blockchain? What specific categories are there? What are the application conditions? Oushin Consulting will guide you through understanding the application information for Malta's blockchain in one article.
Why choose Malta?
Comprehensive IT infrastructure
Over the past decade, Malta has attracted numerous electronic money institutions and payment service providers, investing heavily in its IT infrastructure, thus developing itself into the world's largest iGaming hub and a significant fintech center.
Encouragement of cryptocurrency business
Malta adopts encouraging policies towards cryptocurrencies, attracting many fintech companies to Malta to apply for financial licenses and conduct financial services.
Complete legal regulatory system
The Malta Financial Services Authority has created a well-regulated legal system for the fintech sector, promoting effective competition in the industry and ensuring the normal operation of the market. This not only helps consumers gain fair trading opportunities but also provides investors with a stable economic environment.
In summary, Malta's blockchain not only has full official support but also possesses a solid development foundation, making it an excellent choice for applying for overseas financial licenses.
What is a blockchain license?
When entering the application process, the first step is to clarify the type of blockchain license you need to apply for.
For readers who are not very familiar, blockchain licenses are mainly divided into ICO issuance virtual currency licenses and virtual currency trading licenses.
ICO issuance virtual currency license
This type of license can be further divided into independent cryptocurrency issuance licenses and token issuance licenses. (To understand the specific differences between the two, please follow our next issue.) In short, with it, you can issue your own virtual currency.
In fact, many companies and startups now use token issuance as a means of financing, offering more flexible and convenient financing channels, with timeliness far exceeding other traditional financing methods.
Virtual currency trading license
Holders of this type of license can build their own virtual currency trading platform. They can issue their own virtual currency and also serve as a trading platform to help other customers issue and trade their virtual assets. The platform itself can be divided into DLT exchanges and VFA exchanges based on the types of virtual assets that can be traded. We will also introduce the differences between the two in our next article.
Not sure if you feel a bit confused at this point, as financial regulations are very complex. They rarely tell you directly what to do. You can't simply apply them rigidly. The interpretation of financial regulations relies more on industry experience. Oushin's consulting team uses its years of industry experience to tailor license applications to the client's business model, as any license is just a tool, the first step in expanding overseas business.
What are the application requirements?
Once you have clarified the type of license you are preparing to apply for, you can proceed with the application. Oushin has outlined the main application steps as follows:
ICO issuance virtual currency license
Appoint a VFA agent to assist in registering a "white paper" with the Malta Business Registry, i.e., registering a company in Malta;
Within six months of the white paper company registration, cryptocurrency must be issued for financial instrument testing;
The "dual control" principle, the issuer's business must be managed by at least two people;
All decisions submitted to the Malta Financial Services Authority (MFSA) must be unanimously decided by the issuing company and the VFA;
The issuer must establish network security expansion to ensure document information preservation for compliance review by the business registry.
Virtual currency trading license
Appoint a local VFA agent;
Submit an application form to the Malta Financial Services Authority (MFSA);
Draft and submit a business plan, which needs to include financial budget statements, risk management, anti-money laundering compliance, business strategy, asset security protection plans, and other risk control systems;
Establish a local management team that meets the requirements;
Establish a supporting system with software support;
Capital injection requirement: €730,000;
Official application fees
Oushin has also compiled the official application fees for you (for reference only):
Fee Description Application Fee Annual Maintenance Fee
White paper registration fee €8,000 €2,000 depending on compliance proof submission
Establish ICO under local regulations €12,000 €12,000
Establish VFA license under Article 14 of the Act €10,000 €10,000
Simultaneously establish ICO and VFA license €15,000 €15,000
How to apply?
Having understood the application requirements and fees, the question arises, as an applicant, how should you prepare for the application? After all, financial regulations are never black and white. How to execute depends on each applicant's situation.
The entire application process can indeed be quite complex and cumbersome for clients encountering EU financial regulations for the first time. For example:
Even with EU financial regulations, which country offers more advantages for application? After all, each country's financial regulatory authority will have different compliance requirements.
How to choose a reliable and cost-effective financial partner? Such as law firms, custodian banks, insurance companies, VFA agents, auditors, etc.
How to establish your business model and draft relevant application documents according to regulatory requirements?
How to quickly form a qualified team locally? What are the minimum requirements for licensed personnel?
During the review process, if required to interview by the regulatory authority, how should the applicant prepare?
After the license application, how to use the EU passport to conduct business in EU member states?
Undoubtedly, fintech is currently at the forefront, and its regulation may become increasingly stringent in the coming years. For companies going overseas, time is the most precious resource, and the advantage of "first-mover" is the same in every market. Oushin helps clients obtain financial licenses in the shortest time and establish a compliant operating model, allowing clients to focus their time on more cost-effective matters.
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