Scrutinizing the role of the Virtual Financial Assets Agent within the block-chain world

Abstract

The VFA Act was drafted in order to create legal basis for defining and regulating initial virtual financial assets and all matters ancillary to it, amongst which there are licensing requirements to operate within the VFA market and preventive measures against the possible abuse of the market. Interlocking these 2 subjects together is the Virtual Financial Asset Agent, a new role created by the VFA Act. The Virtual Financial Asset Agent or VFAA bears an intermediary role, one which is supposed to be the link between the clients willing to invest in VFAs, and the Malta Financial Services Authority (MFSA). The VFAA’s overall goal is to alleviate the issuer’s process for investing in VFAs by providing professional legal advice on what his plan of action is to be, whilst simultaneously verifying that such client is in line with the requirements the MFSA has implemented in order to be granted the license to invest. Evidently, the role of the Virtual Financial Agent is the life-line in the functioning of the Block-chain Market. This is the exact reason as to why such a role needs to be thoroughly scrutinized. The novelty of this digital world advocates innovation and opportunities, yet simultaneously represents uncharted territory, for which no precedent exists. Inexperience within a sector renders it prone to faults, lacunae, and oversights. These possible defects can be minimized through regular troubleshooting of the current system.