Fintech

Recognized as a leader in fintech, our firm has established itself as a trusted partner for industry innovators. Chambers Fintech ranks WH Partners as a Band 1 firm, with Joseph F. Borg acknowledged as a Band 1 professional. Additionally, Gaby Zammit and Galyna Podoprikhina have earned recognition in the “Associates to Watch” category of this prestigious guide. Our team is also ranked in the Legal 500 EMEA guide. Legal 500 Legal 500 highlights our firm’ expertise, noting:

“WH Partners is well-positioned to handle the full spectrum of blockchain and technology-related matters, with seasoned practitioner Joseph F. Borg leading the charge.”

The firm is at the forefront of fintech and blockchain advancements, collaborating closely with key players. Utilising the vast technological know-how as well as experience in dealing with financial services for over a decade, places this practice area as a pillar of our law practice. Our fintech team provides a 360-degree one-stop shop to help our clients traverse the intricate world that exists at the nexus of technology and legislation.

Fintech companies, payment service providers (PSPs), Emoney institutions (EMIs), broker-dealers, capital market players, issuers of new crypto assets, cryptocurrency exchanges, and cryptocurrency brokers are just a few of our diverse clientele. We have also assisted a number of firms that provide embedded finance products.

Financial Institutions and Embedded Finance

Malta is one of the most attractive EU jurisdictions for PSPs and EMIs. The country has attracted numerous industry players to its shores from where they have and are developing their thriving businesses. Over the past years we have also seen various financial institutions providing embedded finance products, moving to Malta. With the advent of digital technology and open banking, there’s been a paradigm shift. Embedded finance capitalizes on this shift, allowing companies outside the financial sector to embed financial services into their offerings. This evolution is driven by consumer demand for more convenient, personalized, and accessible financial services.

VFA and MiCA

The only EU member state that has adopted a 360-degree approach to regulating cryptoassets is Malta.

Since 2018, Malta has adopted a MiCA-style strategy, becoming a leader in the creation of a cryptocurrency regulatory framework. With the adoption of the Maltese Virtual Financial Services Act (VFA Act) and the recent additional steps to bring it fully in compliance with the MiCA regulation in anticipation of the applicability of MiCA, which will replace the VFA Framework, Malta has demonstrated its commitment to creating a dynamic and well-balanced regulatory environment.

The Malta Financial Services Authority (the “MFSA”) made changes to the VFA Rulebook and is gradually implementing new rules and regulations as part of its strategy to give CASPs adequate time to respond, in order to make sure local VFA service providers are prepared for MiCA. This transition plan differs from other jurisdictions in that it provides enterprises with a more controlled and gradual period of adjustment.

Malta’s regulatory system aims to safeguard investors, ensure compliance, and encourage innovation and growth in the cryptocurrency sector. This combination makes Malta a suitable destination for CASPs looking for a jurisdiction that supports their business objectives while upholding tight laws. For crypto asset businesses seeking stability and growth in a well-regulated environment, the Maltese regulatory framework offers itself as a more favourable site due to its progressive early adoption, emphasis on innovation, and early compliance with EU laws.

How can we help?

Legal Guidance in Establishing Financial Institutions: WH Partners offers experienced and high-quality legal advice for the creation of several kinds of financial institutions in Malta, such as payment service providers (PSPs), electronic money institutions (EMIs) and crypto-asset services providers (CASPs). From the initial concept to the beginning of operations, the firm’s competence encompasses the full legal procedure.

Regulatory Compliance and Licensing

The firm offers in-depth legal assistance in navigating Malta’s regulatory landscape. This includes guidance on obtaining necessary licenses from the Malta Financial Services Authority (MFSA) and ensuring compliance with Maltese financial regulations and EU directives.

Corporate Structuring and Governance

WH Partners advises on the optimal corporate structure for financial institutions in line with Maltese law. This includes drafting and reviewing legal documents, advising on corporate governance, and ensuring adherence to legal and regulatory requirements.

Due Diligence

The firm can assist on mergers and acquisitions involving financial institutions and fintech businesses and can assist with conducting regulatory and commercial due diligence in relation to these transactions.

Compliance

WH Partners can assist financial institutions and fintech businesses to comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations, as well as financial services regulatory requirements, among other legal requirements.

Integration of Fintech Solutions from a Legal Perspective: Recognising the importance of technology in modern finance, WH Partners advises on the legal aspects of integrating fintech solutions into the operations of financial institutions, ensuring that these integrations comply with existing laws and regulations.

Ongoing Legal Support

Beyond the setup phase, WH Partners offers ongoing legal support to financial institutions. This includes regulatory updates, legal representation, and advice on operational, compliance, and strategic matters.

Networking and Industry Insight

Leveraging their extensive network in Malta’s financial and legal sectors, WH Partners can facilitate valuable connections and provide insights that are beneficial for newly established financial institutions.

Tailored Legal Services for Diverse Financial Entities

The firm provides customised legal solutions to meet the specific needs of different financial institutions, ensuring that each entity’s legal framework is robust and compliant with Maltese law.