Dream of Blockchain Hub Falters As Malta Sees Low Pass Rate in Crypto Exam

Only 39% of examinees taking the Maltese government’s cryptocurrency exams have managed to pass. As Malta gears up to become a blockchain hub of Europe, the country’s brand new legislation, the Virtual Financial Assets Act (VFA) requires financial practitioners hoping to make the switch to the world of crypto to undergo a test for them to be given an agent certification. A whopping 61% have therefore failed to successfully make the move to the crypto industry.

According to VFA, the Maltese regulation for cryptocurrencies, practitioners must also undergo a brief training before they sit for this qualifying exam. Local news outlet Times of Malta reports that the results of this exam, the first of which was held last month, revealed that roughly 2/3rds of the examinees had failed to clear the exam despite the fact that the authorities had introduced modifications to the course and questions at the last moment to make it easier to pass.

The questions were set by the MFSA of the Malta Financial Services Authority and was conducted by the Institute of Financial Services Practitioner. The news agency cited sources that said that almost 250 candidates, currently employed as accountants, auditors or lawyers took the exam. The paper had an MCQ (multiple choice questions) pattern. While grading and correcting the answer scripts, it became evident that not many would pass. To make sure at least some people would pass, some changes were made, making the marking system more lenient. Even so, just 39% managed to clear it.

The Maltese government’s “Blockchain Island” policy is spearheaded by three main legislations. Perhaps the key one among them is the VFA, which makes it mandatory for VFA service provider aspirants to have a license before they start working in that capacity. Any company which seeks to work with cryptocurrencies, be it in terms of conducting ICOs (initial coin offerings), portfolio management or investment recommendation services, must have a certified agent who qualified in the cryptocurrency exam.