Bequant granted in-principle MFSA approval for exchange and prime brokerage products

Bequant, a global digital assets services firm, has been granted in-principle approvals by the Malta Financial Services Authority (MFSA) to operate both a prime brokerage and exchange.

The MFSA has approved in principle a Class 3 Virtual Financial Assets (VFA) Licence to Bequant Pro Limited to provide VFA services as a prime brokerage to Experienced Investors including: Custodian and Nominee Services; Reception and Transmission of Orders; Execution of Client Orders; Dealing on Own Account; and Placing of VFAs.

"These in-principle approvals are the culmination of years of work, and go to show that authorities are eager to work with firms that embrace regulation, says CEO George Zarya. "We are delighted to continue collaborating with the MFSA as the industry matures and more institutions enter the space needing a one-stop-shop to satisfy their needs. This decision shows Bequant's commitment to bridging the gap between traditional finance and digital assets."

Additionally, Bequant Exchange Limited has been granted in principle a Class 4 Virtual Financial Assets Licence (VFA) to provide the following VFA services to Non-Experienced and Experienced Investors: Operate a VFA Exchange; Custodian and Nominee Services; and Dealing on Own Account.

Bequant Exchange Limited and Bequant Pro Limited were first incorporated on 31 Aug 2018 in Malta to take advantage of the digital assets framework that was introduced by the MFSA, one of the first regulators in the world to introduce such a comprehensive regulatory regime back in 2018. Both companies have been operating in Malta under the transitory provisions of the VFA Act and have been working with the MFSA closely during this process.

"This is the next step in our quest to become the go-to destination for institutions," says COO Sergiu Frasineanu. "The MFSA is taking the lead on digital assets regulation, and we are proud to have in-principle approvals. We will continue to work with the regulator in order for us to be fully-licensed."

These in-principle approvals come as Bequant is ramping up expansion to serve a wider audience of digital assets firms including hedge funds and asset managers, exchanges, OTC desks, family offices and more.