On the 15th January, 2019, MFSA issued a circular ( https://www.mfsa.com.mt/wp-content/uploads/2019/01/20190115_VFAA_Circular_Issuers.pdf) informing that the Registration Form for Whitepapers under the Act is available online on MFSA's website, through the ‘Apply for Authorisation Page' under the Virtual Financial Assets Framework Page. This has to be be duly filled in by the VFA Agent appointed by the Issuer of the Virtual Financial Asset.
For the purpose of submissions of whitepapers the term ‘VFA Agent' shall refer to a person who either: is registered as a VFA Agent in accordance with Article 7 of the Act; or has submitted an application for registration as a VFA Agent in accordance with Article 7 of the Act, provided that such person shall have at least three proposed Designated Persons who have successfully completed a course approved by the Authority.
Whitepaper Registration Form is divided in two stages. The Form available online represents Stage One of the Whitepaper Registration Form. Stage One of the Whitepaper Registration Form consists of the following Parts, which the VFA Agent should sequentially complete: - Part 1: Entity Details - Part 2: Virtual Financial Asset Details and Whitepaper Details - Part 3: Fees and Declaration. In order for the Stage One of the Whitepaper Registration Form to be considered complete, the VFA Agent shall have to submit all the required documentation as identified within the Form. The MFSA shall be issuing a guidance note on the Whitepaper Registration Form in the coming days to assist VFA Agents and Applicants in the preparation of their submissions.
The Glossary of Terms of the VFA Framework has been amended to include definitions for the following terms: Admission to Trading on a DLT exchange; Auditor; Board of Administration; Connected Person; Cyber Security Framework; Experienced Investor; Functionary; Offer of virtual financial assets to the Public; Parent Undertaking; Public Sector Issuer; Regulated Information; Related Parties; Restricted Person; Substantial Unitholder; and Systems Auditor.
Issuers having Innovative Technology Arrangement/s in place are required to appoint and have at all times in place a Systems Auditor in relation to such Innovative Technology Arrangement/s. Notwithstanding that the definition of a Systems Auditor within the VFA Rulebook mirrors that found under the Innovative Technology Arrangements and Services Act (Chapter 592 of the Laws of Malta), the Authority shall, for the time being, not require Issuers to appoint systems auditors who are registered with the Malta Digital Innovation Authority (‘MDIA'). Issuers are only required to appoint a person falling under the definition of a Systems Auditor provided within the Glossary of Terms of the VFA Framework, provided that such person, in aggregate, meets all of the competence recognition criteria as set out in Section 3 of Chapter 01, Part A – Systems Auditor Guidelines, issued by the MDIA. The MFSA also requires systems audits and reports to be conducted/drafted in accordance with the MDIA's Guidelines.
On the 25th January, 2019 MFSA issued a general status update on the implementation of the VFA regulatory framework (https://www.mfsa.com.mt/wp-content/uploads/2019/01/20190125_VFAA_Cirular_StatusUpdate.pdf). In a recent public event MFSA informed that Chapter 3 rulebook for VFA Service licences including crypto exchanges should be issued by Mid-February 2019 and that there there were 27 applications submitted for a VFA Agent registration and that official VFA agent registrations should be issued by end of Q1 2019.
