The MFSA has registered the first VFA Agents under the Virtual Financial Assets Act (‘VFA Act’). VFA Agents will be assisting VFA issuers and VFA service providers under the VFA Act and will be making applications to the MFSA on their behalf. The VFA Act requires the issuer (in terms of the VFA Act) to appoint a VFA Agent to assist, monitor and provide guidance throughout the whitepaper registration process, and beyond the offering stage. At the initial stage, the VFA issuer will need to perform a Financial Instrument Test as required by the MFSA to analyze the qualities and features of their token. This test is intended to ascertain whether the underlying nature of the coin or token to be issued is a virtual financial asset, a virtual token, electronic money or financial instrument. Such a test will be important to determine which laws, rules and regulations would apply for the token issuance and the classification of such assets. The VFA agent will also need to perform a thorough due diligence and KYC on their clients and would need to continue supporting the MFSA in its supervisory function by providing the necessary information during post-registration supervision.