The Malta Financial Services Authority (MFSA) has introduced a test under the Virtual Financial Assets (VFA) Act for those applying for virtual currency agent certification. Despite the agency introducing a few changes to boost performance, only a third of about 250 candidates passed the test. The government has said having qualified agents is essential, as many Crypto firms require them.
Malta Now Has Certified Cryptocurrency Agents
Those wishing to become Cryptocurrency agents in Malta have to sit for an exam according to the Virtual Financial Assets (VFA) Act. Malta Financial Services Authority (MFSA) recently set an exam that attracted about 250 auditors, accounts, and lawyers. The applicants were required to take a test that included multiple-choice questions.
Initially, the test was to use a negative marking scheme for grading. However, after a poor performance, the examiners were forced to introduce last-second changes to boost the performance. Even after introducing these changes, only 39 percent of the candidates passed the test. Those who succeeded will now have a chance to work with the various Crypto firms in the country.
Why The Exam Is Important
When the Virtual Financial Assets (VFA) Act was passed, it required those wishing to act as Cryptocurrency agents to enroll in a short training course and then take a test before being allowed to work. Consequently, the Institute of Financial Service Practitioners was given the responsibility of setting the course and exam for the financial services practitioners wishing to become certified agents in the industry.
Malta has already expressed its desire to become a ‘Blockchain Island.’ A few months ago, the MFSA carried out a study on industry players to establish knowledge about the technology. The agency noted that most people in the industry lack the necessary information to become VFA agents. The regulator recommended the need to address this knowledge-gap given the risk in the sector.
The MFSA proposed various requirements that would be essential in addressing the existing problem. One of the recommendations included the written test. The agency has also increased the regulatory fee and capital requirements. Moreover, continuous professional education has become mandatory on the island.
Cryptocurrency agents are essential in many processes in the sector. Any company wishing to raise capital by selling coins to investors and listing them on exchanges require the services of these agents. The agents are also needed when the company is contacting the MFSA. Other businesses that provide investment advice or portfolio management also need the services of these agents.
Cryptocurrency Regulation In Malta
Whereas many countries are still undecided on how to handle the virtual currencies, Malta has already put in place various measures to encourage the growth of this technology. It is already the first country to pass altcoin law in the world and is working hard to become a Cryptocurrency hub. Many countries are trying to learn from this island on how to handle the altcoins.
Due to difficulties in regulations in many countries, many Crypto firms have moved their offices to this island. The country provides an easy way to for Cryptocurrency businesses to access the lucrative European market. Blockchain and Crypto-based firms have created jobs for many people in the tiny country.