The Malta Financial Services Authority (MFSA), Malta’s single financial regulator, has officially issued “in-principle approval” for its very first batch of registrations of 14 Virtual Financial Assets (VFA) agents.

The 14 VFA agents had submitted their registrations in November last year. Local media The Times of Malta reported that over 250 applications had originally been made, but two-thirds of them had failed to pass MFSA’s assessment. Eventually, only 28 companies were able to apply for a license, of which the 14 VFA agents were approved with “minor details” to be adjusted.

In a press release (Apr 2), MFSA said VFA agents are to serve as the first line of defense for “market integrity and public interest”. They assist virtual financial asset issuers and providers under Malta’s VFA Act, as well as vet their business plans for suitability before helping them make requisite applications on their behalf to MFSA.

Dr. Christopher Buttigieg, Head of MFSA’s Securities and Markets Supervision, said the approval of VFA agents is “an important milestone in the MFSA’s effort at becoming a regulator of excellence” in the crypto assets field. He further commented that MFSA today has a “complete framework that caters for all key areas of risk”, such as to consumers, market integrity, and cybersecurity.

Prior to MFSA’s approval, various media reports noted that crypto firms have faced difficulties opening accounts with Maltese banks. Silvio Schembri, Malta’s Parliamentary Secretary for Financial Services, eventually confirmed that the banks were waiting for these companies to be MFSA approved before extending banking services to them.