Hong Kong-based Crypto.com has received preliminary approval from the Malta Financial Services Authority (MFSA) for its leverage across the European region. Founded in 2016, the platform has over 3 million users and adopts the highest standards of security. Moreover, the exchange’s 100% of the funds are stored in cold storage. Also, the U.S. citizens holding funds for up to $250,000 in the platform are eligible for being insured by the FDIC.
Preliminary Approval to Crypto.com from Malta Financial Services Authority
The firm is currently awaiting two financial licenses that mandate how the firm should operate as well as what services it can provide. If the licenses are granted for final approval, Crypto.com could soon start offering payment services.
The firm will also be eligible for issuing e-money as a licensed financial institution with the Maltese governing body. Crypto.com will also be able to provide custody and deal in-house with customers’ crypto assets as one of the first-ever holders of a Class 3 Virtual Financial Assets license from Malta.
However, the financial licenses provided to Crypto.com are only general for now. Kris Marszalek, CEO of Crypto.com, says that full licenses will be granted to the crypto company once the firm fulfills all the conditions required by the MSFA.
The CEO, however, refused to provide additional details on what are the required conditions and how they will be met.
The European Commission had recently proposed a framework pertaining to cryptocurrencies called Markets in Crypto-Assets (MiCA) that would impact the entire European Union.
Even though crypto frameworks in jurisdictions across the globe are difficult to come across, Marszalek says that Malta is one of the few countries in the world with clear regulations on cryptocurrencies.
He further added on the firm’s urgency to acquire licenses in Malta saying:
“The licenses will allow us a competitive advantage to non-licensed firms and once MiCA is in place across Europe, and possibly grandfather us into the pan-European digital assets legislation which is currently being reviewed.”