Chiliz Granted In-Principle Approval to Offer Digital Asset Services in Malta
Blockchain company Chiliz announced on Tuesday that its SportsFi platform, Socios.com, has been granted in-principle approval by the Malta Financial Services Authority to operate as a licensed VFA provider. Indeed, this regulates compliance for Socios.com under Malta’s digital asset regulatory framework.
Socios Secures Class 3 VFAA License
The approval actually confers upon Socios.com a Class 3 VFAA license, which will allow the firm to provide a variety of VFA services, including holding or controlling client assets. It does not permit the operation of a VFA exchange, though. Alexandre Dreyfus, CEO of Chiliz and Socios.com called this a “milestone” that underscores Chiliz’s commitment to regulatory compliance and transparency.
Commitment to Global Regulatory Compliance
Chiliz’s approval follows a broader strategy by the company towards international regulation. The firm has so far been licensed as a virtual asset service provider in Lithuania and is also compliant with UK financial promotion regulations. Socios.com is also pursuing a registration process in Indonesia, Spain, and Italy to further its regulated presence.
The MiCA Framework by the European Union
This development represents Chiliz’s continuous regulatory journey with the soon-to-be-implemented MiCA regulation in the EU, whose effective date is December 2024, thus setting one standard across all EU member states and further cementing Chiliz’s regulatory position in Europe.
Supportive Regulatory Environment for Digital Assets
Also, Malta has been fairly proactive in terms of cryptocurrency regulation with its Virtual Financial Assets framework that was introduced in 2018. More recently, the MFSA launched a public consultation aimed at bringing its laws in line with MiCA. This includes forcing crypto firms to create wind-down plans-pre-structured road map for winding up their business, if required.
Malta Strengthens Its Position as a Crypto Hub
With that, Chiliz joins the ever-growing list of firms that have picked Malta due to the friendly regulatory environment in which it exists. Last July, OKX crypto exchange announced Malta as its MiCA compliance center within the EU. Its well-balanced regulatory framework has seen Malta remain attractive for crypto firms and continue to be a favored destination for digital asset businesses in the region.
With this license, Chiliz reinforces its presence in Malta and further advances its strategic path toward regulatory compliance. It will contribute to raising the level of transparency and trustworthiness of the ecosystem within the blockchain space.
