Blockchain And Crypto Investment Subsidiary Established By Fineqia In Malta

Announcements, Blockchain, News | August 17, 2018 By:

Canada-based firm Fineqia International has established a new blockchain and cryptocurrency investment subsidiary in Malta, a European island country located close to Italy.

Headquartered in Vancouver, Fineqia, through its subsidiaries, operates a regulated crowdfunding platform focused on debt instruments. It provides an online platform and associated services to support security issuances and manage administration of debt securities. The company was formerly known as NanoStruck Technologies and changed its name to Fineqia International in August 2016 to reflect the direction of the company’s business.

The new subsidiary, Fineqia Investments Limited, will hold Fineqia’s growing portfolio of blockchain, FinTech and cryptocurrency technology companies worldwide, icluding Estonia-based firm Black Insurance, Malta-based IXL PremFina and UK-based Nivaura Ltd.

Fineqia said Malta was selected for its advanced regulatory framework that qualifies and regulates blockchain and cryptocurrency companies.

“Malta ticks a lot of boxes as a pioneering crypto-friendly regime,” said Fineqia CEO Bundeep Singh Rangar. “Choosing a jurisdiction where the legal and regulatory framework is in sync with emerging technologies and new financial instruments is as important as selecting sound investment opportunities in the first place.”

Earlier this year, the Maltese Parliament passed three crypto-related bills that are designed to make Malta one of the most desirable locations for setting up blockchain businesses. The bills passed into law are “The Malta Digital Innovation Authority Act (MDIA Act),” “The Virtual Financial Assets Act (VFA Act),” and “The Innovative Technology Arrangements and Services Act (ITAS Act).”

The MDIA Act established the Malta Digital Innovation Authority, which focuses on governance arrangements and certifies distributed ledger technology (DLT) platforms for credibility and legal certainty to users. The ITAS Act deals with blockchain arrangements and certifications of DLT platforms. It addresses the setting up of exchanges and other cryptocurrency related businesses such as identity verification services and electronic wallet providers. The VFA Act establishes the regulatory regime governing such companies as well as Initial Coin Offerings.

The announcement came after Fineqia’s UK subsidiary was accepted to participate in the fourth cohort of the Financial Conduct Authority (FCA) Sandbox Regulatory Program. Rangar said this helps his team to develop new asset class within the regulatory protected environment offered by the program.

“It’s testimony to the team’s effort and commitment toward a disciplined and compliant rollout of a new financial product,” Rangar said. “Worldwide demand for borrowings against crypto holdings is increasing and with this test, we intend to demonstrate our ability to successfully tap into this growing market.”