Who we are

A small company striving for greatness.

We are servicing some of the biggest names in the industry. We aim to keep it that way without growing out of proportion.

We are working on the edge of progress. (BAM)

We keep pushing play. (BOOM)

We will bring your business to the next level. (and beyond)

We want to go into details. We want to be reachable. To normal hours and to crazy hours. We get up in the morning with our Asian clients and go to sleep with our US clients.

Start into Crypto Businesses

VFA service providers

This is your official classification in Malta, if you provide such a service, a “Virtual Financial Asset Service” to be exact. A virtual financial asset is the “normal” token or coin which is not a security. And if you want set up a company in Malt to provide a VFA service, then you will need to obtain a license before you start the licensable activity.

The 2nd schedule of the “Virtual Financial Assets Act” (the law) gives us a list of services (THANK YOU!) and those are:

  1. Reception and Transmission of Orders (intermediary for example)
  2. Execution of orders on behalf of other persons (brokerfor example)
  3. Dealing on own account (example: OTC trader with own stock)
  4. Portfolio Management (the guys that hopefully make more out of your coins)
  5. Custodian or Nominee Services (wallets)
  6. Investment Advice (they guys that tell you hopefully the right coins to invest in
  7. Placing of virtual financial assets (existing coins or token that are “introduced” in or through Malta)
  8. The operation of a VFA exchange (the biggie in all beautiful colors)

Those services are offered through one of 4 licences (this depends on how you offer one of the 8 service above). Let’s dive into these different licence classes.

VFA Licences

Class 1

Licence holders authorised to receive and transmit orders and/ or provide investment advice in relation to one or more virtual financial assets and/ or the placing of virtual financial assets. Class 1 licence Holders are not authorized to hold or control clients’ money.

Memo to myself: No holding of clients’ money or crypto – this seems right, for example, for investment advice or decentralised P2P platforms.

VFA Licences

Class 2

Licence holders authorised to provide any VFA service but not to operate a VFA exchange or deal for their own account. Class 2 Licence Holders may hold or control clients’ money in conjunction with the provision of a VFA Service.

Did you notice? With this licence the holding of clients’ money and crypto is allowed – this might be just the right licence for portfolio managers or centralized P2P platforms.

VFA Licences

Class 3

Licence holders authorised to provide any VFA service but not to operate a VFA exchange. Class 3 Licence Holders may hold or control clients’ money in conjunction with the provision of a VFA Service.

Getting hotter now: You still cannot be a “normal” exchange but, for example, with this licence you can be an OTC trading platform, where you sell your own stock to clients.

VFA Licences

Class 4

Licence holders authorised to operate a VFA exchange and to hold or control clients’ money, virtual financial assets and, or private cryptographic keys and custodian or nominee services solely in relation to the operation and activities of such VFA exchange.

The big one:  It’s important to understand that a VFA exchange is like a traditional stock exchange. The exchange is only the middleman, runs a platform or a system to match bid and offer and neither clients nor the exchange “know” each other. (non-discretionary basis). The prices are set by the market force of supply and demand (the invisible hand).

Enter your contact details and we will get back to you as soon as possible to make your business fly!

Requirements

The licence requirements and application

Imagine a comic book from the good old days, maybe Walt Disney. Imagine Mickey Mouse (I know, trademark) explaining something to Goofy over and over again. He is not getting it. Imagine Mickey being frustrated.

SIIIIGGH in a massive speaking bubble.

SIGH

I cannot put it differently. The answer to that question, what the crypto licence requirements are, what it entails, how long it takes starts always with a sigh.

“Can you tell me little bit about the licence? Is it difficult to get?” “Sigh. Yes”.

“Can we expect to get it in less than one year?” “Sigh. Probably not. “

“Will it be an expensive and burdensome process to get licence in Malta?” “Sigh. Yes.” Depending on your personal definition of “burden” (or for some compliance super heroes even “enjoyment”) maaaybe the answer is:  NO.

For most of persons the licence application procedure in Malta will be a “once in a life time process”. A process to actually remember and talk about. One of those dark periods in life that you laugh about when it’s long over and only if you somehow successfully managed to get over such period.

A life lecture.

This might be a different experience from firm to firm and we are certainly not the best of the bunch. But even when you hire the best of them all, the process itself is just SIGH.

Why do we put it like that?

Because we have been there.

We know about the frustrated moments and we know about the exhausting moments and the amount of brain power you have to come up with.  We know about the patience that is required to get an answer from the MFSA.

And we know about the hectic that erupts when the regulators send you a 196-question questionnaire, going into a level of detail that you did not even know it existed and expecting an answer within 2 weeks.

We much rather prepare you. Get your mind ready. For an intense journey.

Let’s put in numbers and perspective.

You do not require any company, any office, any staff, any computer or for that sake anything to get rolling. The only real expense for you in order get MOST of the licensing work behind you is:  legal fees. The whole application is presented in theoretical manners to the regulator – pure paper magic.

There is an initial meeting with the MFSA in Malta – so add a flight and a hotel to the costs, and a new suit and fresh trimming: you want to make the best of impressions during for this meeting.

It’s like meeting your parents in law for the first time: even so you KNOW that that there will be plenty of opportunities in the future to prove to them you are good person. A reputable person and a right choice:

You don’t want to mess up this first encounter. You smile. Make an effort. And present yourself in the best way.

Fees

Expect the legal fees to be substantial. Ball park: 30k-36k. Yep. NORTH OF THIRTY THOUSAND EURO.

This is the fee to establish if they give you a licence. Your ticket to garden Eden. (disclaimer: we do not guarantee any outcome).

The application evolves around who you are, what you are, what you can and about what you are missing and what you need to add to have the perfect mix of competence, solvency and integrity.

Team.

This means you need to invest into employees – once the application is approved in principle. Not any. They have to be fit and proper.

The team you have to add depends on the team you currently are. And I am using the term team not without a purpose. You will need a team in Malta. In a real office in Malta. Contributing real values to the business.

Teeeeeeaaaaaaam.

Let’s assume the owner is a techy. A computer genius. Knows all about the code. He eats code. He knows how a trade mechanically works but he has no idea about economics. About finance. About fundamentals of trading, about how to read a chart, stop losses, limits and market making. Add a trader or financial trading person.

Then you are still missing one person for compliance.

The one person to make sure everyone is playing by the rules and is not afraid to tell the hotheads from the trading to stop, if required.  Add another person for risk and then of course the accountant the CFO – the guy to crunch the numbers.

Now switch on your imagination!

I think you can see where this is going, can’t you?

  • Can you see the office suite on the 2nd floor by the sea in a modern, light coloured building?
  • Can you see YOUR team, there? Coming to the office at 8 or 9 am, preparing for the day ahead?
  • Can you smell the quadruple shot of espresso the head of trading requires after a long night?
  • Can you smell that coffee transforming the air of a freshly cleaned office kitchenette?
  • And the whirring of the copier as it boots up?
  • Can you see the people sitting down in front their multiple widescreen monitors with funny charts on them?
  • Can you see the first meeting of the team leaders about yesterdays performance?
  • And can you see receptionist smiling while on the phone with head office global?
  • Can you feel the buzzing atmosphere of crisp, busy Tuesday morning?
  • The CFO presenting his figures to the board?

We can see that.

And the MFSA wants to see that.

Especially the strong espresso.

Big Questionmark

All this hassle, is it worth it? Is it justified?

Simple and plain. Yes.

Understand that this licence will give you ultimate credibility.

There is no closer link to a normal regulated financial company.

There is nothing closer to what banks want to work with. Or insurances. Or payment providers.

This is the closest you will get to provide the highest degree of confidence to your clients. Retail and more importantly institutional clients.

The onus of legitimacy is on you and you deliver. Keep. Pushing. Play.

Meet The Team

Executive team

The Cryptico Team combines a passion for esports, industry experise & proven record in finance, development, marketing & licensing.

Philipp M. Sauerborn

Crypto Team Leader

Dragana Nedin

Legal Project Manager

Dr. Michael Calleja LLB LLM

Crypto Lawyer

Ekaterina Avdeeva LLB LLM

Junior Crypto Lawyer

Dr. Rebecca Mifsud LLB LLM

Junior Crypto Lawyer

Contact

Get In Touch

Any question? Reach out to us and we’ll get back to you shortly.

  • phone+356 213 777 00
  • mailinfo@drwerner.com