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A Class 3 VFAA license would allow Socios.com to provide any digital asset service and hold or control clients’ assets as they provide a virtual financial asset service.
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Chiliz has announced that its SportsFi platform Socios.com received in-principle approval from the Malta Financial Services Authority (MFSA) for a license allowing it to provide digital asset services.
According to Chiliz, the in-principle approval grants Socios.com a Class 3 Virtual Financial Assets Act (VFAA) license. The project said this would allow Socios.com to operate as a regulated virtual financial asset (VFA) provider, which Chiliz says will help establish it as a trusted and compliant platform.
Class 3 license holders limitations. Source: MFSA
According to the MFSA’s Virtual Financial Assets Rulebook for VFA service providers, Class 3 VFAA license holders can provide any VFA service but cannot operate a VFA exchange. The license also permits them to hold or control clients’ assets in the course of providing services.
A “significant milestone” for Socios.com
In a press release, Alexandre Dreyfus, the CEO of Chiliz and Socios.com, said that the in-principle approval is a “significant milestone for the Chiliz Group.” Dreyfus explained:
“It validates our commitment to regulatory compliance and transparency in the rapidly evolving blockchain space. As pioneers in the SportFi sector, we recognize that the highest standards of regulation and transparency are required to build trust with all stakeholders in our ecosystem.”
The latest approval aligns with the platform’s ongoing compliance efforts in multiple regions. Socios.com said it is adhering to financial promotion regulations in the United Kingdom, has obtained virtual asset service provider authorization in Lithuania, and has registered in jurisdictions like Indonesia, Spain and Italy.
Chiliz added that these compliance efforts align with the forthcoming European Union’s Markets in Crypto-Assets Regulation (MiCA), set to take effect in 2025. The company, which employs more than 100 staff in Malta, says the license will support its mission of building a sustainable blockchain ecosystem for sports.
Related: Nansen integrates blockchain data from SportFi chain Chiliz and Ethereum rollup zkSync
OKX selects Malta as MiCA hub
In addition to Chiliz, crypto exchange OKX has also selected Malta as its MiCA hub. The exchange plans to leverage its existing Class 4 license and infrastructure to expand its crypto services in the European Union.
Class 4 license holders in Malta are permitted to provide any VFA service and can control or hold customers’ assets while offering virtual asset services.
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This article first appeared at Cointelegraph.com News
