According to reports, in Malta, the government created an exam for financial services practitioners seeking to acquire cryptocurrency agent certification. After reviewing the marks, the Maltese government revealed that just 39 percent of those who took the exam passed. This exam is part of the requirements authorized by the country’s newly established Virtual Financial Asset Act.
According to Malta’s Virtual Financial Assets (VFA) Act, practitioners who want to act as agents in the field that includes cryptocurrencies and initial coin offerings (ICOs) must successfully complete a short training course and pass an exam. This first exam of this kind took place this past September.
The Times of Malta reported that “Nearly two-thirds of those applying for cryptocurrency agent certification failed the official assessment process despite last-second changes intended to boost the pass rate.”
The exam was set by the Malta Financial Services Authority (MFSA) and administered by the Institute of Financial Services Practitioners. In addition to that, the publication cited documentation revealing that about 250 layers, accountants, and auditors took the exam, which consisted of a series of multiple choice questions.
“Once the exam papers were graded, it became clear the pass rate was extremely low,” the publication conveyed, adding that “Even after the changes the pass rate was just 39 percent.”
As stated by the Malta Financial Services Authority’s (MFSA) consultation script for VFA service providers, “any person who is providing a VFA service… shall within twelve months apply for a license with the competent authority in terms of Article 14 to the Act,” the CBS Group described.
The MFSA wrote, “It has also become evident that certain industry players are not sufficiently prepared to register as VFA agents.”
The regulator, therefore, proposes a number of additional rules for them to comply. They include increasing the initial and ongoing capital requirements as well as regulatory fees. In addition, the MFSA proposes “introducing a rigorous competence assessment” and “a mandatory requirement for Continuous Professional Education.”
The Times of Malta reported, “The VFA Act is one of three new laws forming part of the government’s ‘Blockchain Island’ strategy and which seek to regulate the blockchain and cryptocurrency sector.”
Additionally, adding that “it will enter into force in November,” other than trading cryptocurrencies and issuing ICOs, the news outlet went on to detail that, “Companies looking to provide other virtual financial asset services, such as portfolio management or investment advice, also need an agent to apply for a license.”