While Class 3 license holders cannot operate a VFA exchange, Socios.com will provide various VFA services, including asset custody.
Socios.com, a leading blockchain fan token and engagement company launched by Chiliz Group, has gained in-principle approval to enter the Maltese market legally. In an official announcement on Friday, the company said the license was authorized by the Malta Financial Services Authority (MFSA).
With this license, the sport and entertainment platform is now recognized as a regulated virtual financial asset (VFA) provider under the country’s class 3 Virtual Financial Assets Act (VFAA). It also allows Socios.com to engage in the placement of virtual financial assets as a trusted and compliant platform, among other services.
Class 3 License Holders Not Allowed to Offer Crypto Trading Services
In Malta, Class 3 license holders are not permitted to serve as digital asset service providers under FSA’s Virtual Financial Assets Rulebook for VFA service providers.
According to the regulator’s official website, these license holders can provide any VFA service, including custody services, but cannot operate a VFA exchange.
Despite the restriction, Socios.com has been in the business of connecting fans from across the globe to their favorite football clubs, such as Paris St Germain (PSG), Man City, and FC Barcelona, through their dedicated fan tokens since its launch.
So far, the platform has established its presence in countries like the United Kingdom, Lithuania, Indonesia, Spain, and Italy. Like Malta, the fan engagement firm worked with financial regulators in these markets before entering their country.
In the UK, for example, Socios.com adheres to the strict regulatory framework established by the country’s Financial Conduct Authority (FCA) for businesses engaging in and promoting crypto products.
Building a Sustainable Blockchain Ecosystem
Alexandre Dreyfus, CEO of Chiliz and Socios.com, sees the VFA license as another great show of its compliance efforts, validating the firm’s commitment to adhering to market rules and regulations.
“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,” he said.
Chiliz said the in-principle approval aligns with its dedication to building a responsible and sustainable blockchain ecosystem for sports and entertainment. The company already has more than 100 employees based in Malta.
Not the First
Meanwhile, Chiliz’s Socios.com is not the only crypto company exploring the country. Kraken, one of the leading global digital assets trading platforms, recently selected the nation as its European Hub ahead of the upcoming MiCA regulation next year.
The exchange was awarded the Class 4 license, which allows holders to offer crypto trading services to users who want to explore the market. Both Kraken and Chiliz recognized the country’s robust regulatory framework, which they said is on par with the upcoming MiCA rules.
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