Under the Class 3 VFA license, Crypto.com can provide custodial services and execute orders on behalf of other persons.
Crypto.com, the popular mobile platform for buying and selling digital assets, has become the first cryptocurrency company to receive Malta’s Class 3 Virtual Financial Assets license.
The license was granted by the Malta Financial Services Authority, or MFSA, paving the way for broader recognition of digital assets throughout the European Union. As a licensed Class 3 VFA Service Provider, Crypto.com is subject to more rigorous governance, compliance and security requirements.
Prior to obtaining the VFA license, Crypto.com was operating under a transitory legal framework in Malta. The tiny Mediterranean nation is one of a small number of European Union jurisdictions to have developed clear regulatory guidelines for cryptocurrencies.
Kris Marszalek, the co-founder and CEO of Crypto.com, said his company has “long believed that building a fully regulated business is the best way to accelerate the world’s transition to cryptocurrency, adding:
“Being the first global cryptocurrency platform to receive a Class 3 VFA License from the MFSA is a major milestone for the industry as a whole. We are proud to lead the industry in regulatory compliance, ensuring consumer safety and protection in the EU and look forward to securing licenses in every country we operate in.”
Crypto.com has quickly emerged as one of the largest platforms for digital asset trading, with active users hitting 5 million in October 2020. The company is targeting 15 million users by the end of 2021 and 100 million within five years. The company has also reported more active utilization of its Visa cards, especially for everyday essentials like groceries.
Crypto.com has become a principal member of the Visa network and is looking to expand its fiat lending program this year. Dubbed “Spending Power,” the program allows Crypto.com Visa cardholders the ability to use their cryptocurrency balance as loan collateral.