Bitstraq retracts the story posted on 10 November containing the incorrect statement over having the VFA license from the Authority in Malta.
MALTA, November 30, 2018 /24-7PressRelease/ — Bitstraq retracts the story posted on 10 November containing the incorrect statement over having the VFA license from the Authority in Malta.
Bitstraq exchange has notified the Maltese Regulator, the MFSA (Malta Financial Services Authority) that it intends to avail itself of the 12-month transitory period to apply for a Virtual Financial Assets (VFA) License as a Class 4 VFA Service Provider from the MFSA for its exchange. This license would allow the trading platform to initiate trading processes for its traders in a regulated manner.
According to the Maltese Government, the VFA Act proposes to regulate Virtual Financial Assets and VFA exchanges operating in Malta and this would, therefore, include Bitstraq. “A Virtual Financial Asset or VFA means any form of digital medium recordation that is used as a digital medium of exchange, a unit of account or store of value that is not electronic money, financial instrument or virtual token.”
The main idea behind obtaining a VFA license is to propel the financial services industry through technology imbibed industries. This act specifically depends on DLT (Distributed Ledger Technology) assets. Through the Financial Instrument Test (FIT), the asset class of the token being issued will imply that it is a Virtual Financial Assets and thus determine the regulations for such assets.
In more legal terms, the Article 2 of VFA Act states that “VFA exchange means a DLT exchange operating in or from Malta, on which only VFAs may be transacted in accordance with the rules of the platform, which is licensed by a competent authority under this Act to provide such services.”
Bitstraq exchange intends to apply for a license under the Second Article of the VFA Act from the Malta Financial Services Authority (MFSA). Bitstraq will undergo a thorough application process including fitness and properness assessments and evaluation of the proposed business models. Only applicants that successfully undergo this process will be granted a license by the authorities of Malta.
Bitstraq is leaning towards creating a brighter and better exchange for traders. Most large crypto-exchanges (controlled & trade) lack licenses from governments and regulatory bodies. Regulation is vital for the crypto-community to move forward. Bitstraq maintains its stance on becoming the finest exchange within the crypto whilst complying with its regulatory obligations. Get involved in Bitstraq and trade hassle-free.
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