In line with EU MiCA standards, Chiliz’s SportsFi platform Socios.com has obtained Malta’s in-principle approval for digital asset services, supporting its compliance efforts in Europe.
Chiliz, a blockchain company, said on Friday that the Malta Financial Services Authority (MFSA) had given its SportsFi platform, Socios.com, in-principle approval to provide digital asset services.
With this approval, the platform can now function under Malta’s regulatory framework as a regulated provider of virtual financial assets (VFAs).
Chiliz’s Socios.com Achieves Class 3 VFAA License
According to Chiliz, the in-principle approval grants Socios.com a Class 3 Virtual Financial Assets Act (VFAA) license, permitting it to provide various VFA services.
However, the license does not authorize it to operate a VFA exchange.
JUST IN: Chiliz's @Socios.com, a #Blockchain Built For Sports, receives in-principle license approval in #Malta. pic.twitter.com/H8yiCIUfIc
— Coinwaft (@coinwaft) October 25, 2024
This license also allows Socios.com to hold or control client assets, providing a range of services within a regulated environment.
The approval is a “milestone” for the Chiliz Group, according to Alexandre Dreyfus, CEO of Chiliz and Socios.com, who emphasized the company’s dedication to transparency and regulatory compliance in the blockchain space.
He emphasized how crucial strict regulations are to fostering trust among ecosystem stakeholders.
Having obtained virtual asset service provider authorization in Lithuania and complied with UK financial promotion laws, Chiliz’s recent approval is in line with its efforts to maintain compliance across jurisdictions.
Additionally, the platform is actively registering in nations like Italy, Spain, and Indonesia.
The Markets in Crypto-Assets Regulation (MiCA), which is set to strengthen Chiliz’s regulatory framework throughout the region, is in line with these compliance measures.
Chiliz’s Role in Malta’s Regulatory Landscape
Malta, known for its proactive stance on cryptocurrency regulation, introduced the Virtual Financial Assets (VFA) framework in 2018.
To align its regulations with the EU’s MiCA framework, the MFSA held a public consultation in September 2023. The regulations are expected to go into effect by December 2024.
Among the suggested modifications is the requirement that cryptocurrency providers create a “orderly wind-down plan” in order to guarantee a planned end to their operations.
Other businesses, such as OKX, have acknowledged that Malta’s regulatory environment is favorable to their operations, in addition to Chiliz.
In July, OKX selected Malta as its hub for MiCA compliance within the European Union, leveraging its existing Class 4 license to provide a broad range of VFA services and manage customer assets within the EU under stringent regulatory guidelines.