In regards to the story posted on Nov. 10, 2018 “Bitstraq Exchange – A European VFA Licensed Class 4 Service Provider Begins Operations,” we would like to adjust and revise the claims made in the previous publication.
MALTA, November 17, 2018 /24-7PressRelease/ — 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 become all-around more powerful and capable 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 Asset 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 become listed under the Second Article of the VFA Act and therefore intends to acquire the license from Malta Financial Services Authority (MFSA).
Bitstraq is leaning towards creating a brighter and better exchange for traders. After the transitory period. Bitstraq intends to become one of the first exchanges in Europe to be fully regulated. Most crypto-exchanges 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-industry whilst complying with its regulatory obligations.
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