There are many interesting things about obtaining a Malta cryptocurrency license. While people might focus on the country with the big names, Malta is one of these countries that are not popular but have excellent infrastructure that aligns with the 21st-century approach to business.
When looking for a place that is highly centralized on digital technology, it is a place to go. Hence, obtaining a Malta cryptocurrency exchange license is a forward of thinking about positioning yourself in the dynamics of the 21st-century business world.
REQUIREMENTS TO MEET FOR MALTA CRYPTOCURRENCY LICENSE
There will always be something expected to be done to achieve a goal. For legal means of getting things done, there are always some requirements outlined in addition to the documents that will be required to be submitted.
In 2018, such requirements were made stricter. That has resulted in the issuance of a few licenses from that time only. Still, if starting a crypto business in Malta is your current business priority, such requirements are difficult but possible to fulfil. The key point here is following all expectations of the local regulator in terms of starting a business and maintaining its compliance, including AML, later.
The Maltese cryptocurrency exchange license mandates business owner to fulfil these criteria:
Every company needs a headquarter. To do business in Malta, the company must have its headquarter in the country. If that is impossible, there must be at least an office that welcomes inquiries from appropriate parties. (1)
Capital is very important to businesses. The reason why capital adequacy and very viable liquidity (2) is non-negotiable.
Malta is very concerned about the operation of businesses on its shore. This is why it appoints a Virtual Financial Assets agent to be the middle person between the company and crypto regulator on matters related to compliance.
If your company is unable to prove to a reasonable extent that it is capable of sustaining the public trust, no license will be issued. This is why the integrity of the company also matters.
All crypto companies in Malta must present reasonable proof of how well their employees understand the use of technical tools and how they are utilized.
People who have a stake in the business have responsibilities to take before the license can be obtained. They must take a Fit and Proper Test.
The minimum number of employees expected of a company that intends to obtain a Malta crypto exchange license is 3.
It is compulsory for companies aiming to obtain a Malta cryptocurrency license to have a document that highlights the description of its security procedures, without the exclusion of the anti-money laundering measures to be taken and other protocols that are important.
It is very important to know this. It is impossible to obtain a Malta cryptocurrency exchange license without pledging to abide by the Maltese Prevention of Money Laundering and Funding of Terrorism Regulations.
Once you get your Malta crypto exchange license, it means you consent to submit an annual external auditor’s report to appropriate authorities.
A Malta crypto exchange license cost is compulsory during the application process. (3)
There is also a need to pay an annual supervisory fee for the Malta crypto exchange license.
WHY YOU SHOULD CONSIDER MALTA CRYPTOCURRENCY EXCHANGE LICENSE
Economic policies vary from one country to the other. Some countries have harsh economic policies that tend to be detrimental to the interest of foreign investors while there are countries like Malta that are very much interested in the welfare of the business people who have found it worthy to establish something worthwhile to improve its economy. These are what should encourage these corporations:
- Malta is a country located on an island with little landmass compared to countries like America and Canada. But, it is a strong member of the European Union.
- Maltese cryptocurrency exchange license is tenable everywhere in the world. It is operational in Europe.
- Maltese cryptocurrency license offers a huge opportunity. This involves access to high-level banks and other payment providers that are well-known to offer great services in Malta.
- English can be used to process an application for a Malta cryptocurrency license. No need to learn Maltese. (4)
- Its Corporate Tax Regime is very attractive.
CLASSES OF MALTA CRYPTOCURRENCY LICENSE
There are different classes of Malta crypto exchange licenses. The class begins from a limited level to a complex level with each having its requirements.
Class 1: This class of Malta cryptocurrency license allows you to receive and transfer orders and also consult on virtual financial assets. The Malta crypto exchange license cost of this class is 3000 euros with an additional fee for progressive observation of 2,750 euros to be paid annually.
Class 2:With this class of Malta cryptocurrency license, you enjoy VFA-services and can transact with foreign currency. Cost is 5,000 euros one-time fee in addition to 4500 euros to be paid every year.
Class 3:This class can observe all operations without any exchange. It cost 7,000 euros and 6,000 euros to be paid once a year.
Class 4: You can make VFA-operations, with the inclusion of customer funds and custodial services. The required fee is 12,000 euros one-time payment and an annual fee that starts from 25,000 euros.
The policy of Malta as a sovereign state to make laws regarding the operation of cryptocurrency exchanges give a clue to the possibility of cryptocurrency replacing fiat currency. With this information on how to go about obtaining a Malta cryptocurrency license, any exchanger can look towards the island in the center of the Mediterranean Seas for a business opportunity.
(1) That is; a company cannot operate legally when it does not have a physical presence the authority of the island can refer to.
(2) This is not definite. The liquidity value or capital adequacy is determined by the scope of operation of the company aiming to obtain a Malta cryptocurrency exchange license.
(3) This Malta crypto exchange license cost is typically €24,000
(4) This implies that the documents to be submitted will be in English too.