As outlined in the Government Consultation Paper on The establishment of the Malta Digital Innovation Authority; the Framework for the Certification of Distributed Ledger Technology Platforms and Related Service Providers; and a Virtual Currency Act, the MFSA had received positive feedback on the proposed introduction of a new legislative framework regulating ICOs and the provision of certain services in relation to virtual currencies.

In this regard and in order to effectively safeguard the objectives of financial services regulation, the MFSA proceeded to draft the Virtual Financial Assets Act1 (the ‘Act’). The Act empowers the Minister to make regulations, acting on advice of the competent authority, to give effect to the provisions of the Act. The MFSA has proceeded to draft the attached legal notice setting out regulations on [i] exemptions; [ii] fees; [iii] control of assets; and [iv] administrative penalties and appeals. The Authority is seeking feedback from the industry with regards to the draft regulations, the Virtual Financial Assets Regulations (the ‘Regulations’), to be issued under the Act (‘the Consultation’). The main aim of these Regulations is to safeguard financial stability, promote market integrity and ensure investor protection.

The Consultation can be accessed through www.mfsa.mt/consultation and is open to the public from 4 July 2018 until the 20 July 2018. Interested parties are requested to submit their comments and feedback with respect to the Consultation by email on [email protected] by not later than 20 July 2018.