Connect with us

Digital Securities

Bitstraq Granted Maltese VFA Licence

mm

Updated

 on

Granted Licence

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 JansenHe 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

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.

Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Newsletter Subscription

Advertiser Disclosure: Securities.io is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

Securities.io is not a registered broker, analyst, or investment advisor.