Blockchain company Chiliz announced on Friday that its SportsFi platform, Socios.com, received in-principle approval from the Malta Financial Services Authority (MFSA) to offer digital asset services.
This approval allows the platform to operate as a regulated virtual financial asset (VFA) provider under Malta’s regulatory framework.
Chiliz’s Socios.com Achieves Class 3 VFAA License
According to Chiliz, the in-principle approval grants Socios.com a Class 3 Virtual Financial Assets Act (VFAA) license, permitting it to provide various VFA services.
However, the license does not authorize it to operate a VFA exchange.
This license also allows Socios.com to hold or control client assets, providing a range of services within a regulated environment.
Alexandre Dreyfus, CEO of Chiliz and Socios.com, stated that the approval is a “milestone” for the Chiliz Group, emphasizing their commitment to regulatory compliance and transparency in the blockchain space.
He highlighted the importance of high regulatory standards in building trust with stakeholders across their ecosystem.
Chiliz’s recent approval aligns with its efforts to maintain compliance across jurisdictions, having adhered to UK financial promotion regulations and secured virtual asset service provider authorization in Lithuania.
The platform is also actively registering in countries such as Indonesia, Spain, and Italy.
These compliance measures adhere to the upcoming European Union’s Markets in Crypto-Assets Regulation (MiCA), which is positioned to reinforce Chiliz’s regulatory framework across the region.
Chiliz’s Role in Malta’s Regulatory Landscape
Malta, known for its proactive stance on cryptocurrency regulation, introduced the Virtual Financial Assets (VFA) framework in 2018.
In September 2023, the MFSA conducted a public consultation to align its regulations with the EU’s MiCA framework, set to take effect by December 2024.
Proposed changes include requiring crypto providers to establish an “orderly wind-down plan” to ensure structured business discontinuation.
In addition to Chiliz, other firms like OKX have recognized Malta’s regulatory environment as conducive to their operations.
In July, OKX selected Malta as its hub for MiCA compliance within the European Union, leveraging its existing Class 4 license to provide a broad range of VFA services and manage customer assets within the EU under stringent regulatory guidelines.
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