Since being enacted roughly 6 months ago, the Maltese Virtual Financial Assets Act has been well received. In a recent press release, cryptocurrency exchange, Bitstraq, announced that they gained approval and were granted a VFA licence.
This licence will allow for the exchange to legally operate within the nation, and begin their plans for expansion. It also means that both the platform and its users will benefit from increased security through strict regulations.
Speaking on the licencing approval was Bitstraq CEO, Angelo Jansen. He stated, “At Bitstraq, we aim to provide our users with the most secure exchange. We believe in fair Crypto regulations, that is the reason we obtained the VFA Licenses.”
Future Plans for Securities
Bitstraq has a clear goal for the future. They are actively laying down the foundation needed to support digital securities, when they become commonplace. For now, the company functions as a traditional cryptocurrency exchange, but with enhanced security.
This enhanced security is achieved through the implementation of both AI and what is known as the Sentinel Protocol. Working in tandem, these technologies strive to eliminate fraud through, not only detection, but prevention. The AI used is able to detect hackers and bots using their exchange, which would otherwise go unnoticed. Information regarding these fraudulent accounts is then able to be shared with a global network of exchanges. This sharing of suspicion will allow for future prevention of illicit activity – Proactive vs Reactive.
With regards to digital securities, it is expected that the trend of companies utilizing ICOs will continue to transition to STOs being used instead. It is believed that this will result in an STO industry worth roughly $2 trillion in a years’ time.
Bitstraq has recognized this, and has gone on record stating that once they have stabilized their cryptocurrency exchange, they will strive to become compliant with the laws needed to function as a securities broker/dealer.
Bitstraq CEO, Angelo Jansen stated, “Security tokens are the next mega-trend in cryptocurrency and we expect the traditional financial markets to move into blockchain. When the STO market opens up further, Bitstraq will be the destination for institutional and private players to trade the tokenized assets; Utility Tokens, Coins & Security Tokens.”
Malta’s VFA Law
With Malta adopting the moniker of ‘Blockchain Island’, it is no wonder that they are one of the first nations to release and enact a comprehensive ACT pertaining to cryptocurrencies. Known as the Virtual Financial Act, this grouping of rules and regulations was launched in 2018. The underlying purpose of the act is to protect participants within the industry, while encouraging its growth.
Entities wishing to open operations within Malta that fall under the scope of the VFA are required to apply for a VFA licence. To date, this VFA licence has only been approved for a handful of companies.
Bitstraq is a centralized exchange located in Malta. They currently specialize in cryptocurrency trading, with various pairs available on their platform. The company has indicated their intention to expand its services to incorporate digital securities.
The exchange is unique in their use of AI to provide enhanced security for its users.