MFSA Issue Discussion Paper on ICOs, Virtual Currencies and Related Service Providers

Following the issuance of a Consultation Document on the Proposed Regulation of Collective Investment Schemes Investing in virtual currencies, the Malta Financial Services Authority (“MFSA”) has now issued a discussion paper on Initial Coin Offerings (“ICOs”), Virtual Currencies (“VC”) and Related Service Providers. The discussion paper is the first step which will lead to the formulation of a policy to be adopted by the MFSA for the regulation of ICOs, VCs and service providers involved in ICOs and/or other VC activity, which policy will support the innovation and new technologies for financial services in the area of VCs whilst ensuring effective investor protection, financial market integrity and financial stability.

The MFSA have invited all interested parties to provide it with their views on the matter by no later than 11th of January 2018.

This development contrasts with the recent decision of one of Malta’s main local banks which indicated that it will not to allow its clients to purchase cryptocurrencies.

For further information about how GVZH Advocates can help you with your financial services regulation and investment services requirements, kindly contact us on finance@gvzh.com.mt.

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