The MFSA has today published for consultation the Virtual Financial Assets Rules for VFA Agents.
Following the positive feedback received on the proposed introduction of a new legislative framework regulating Initial Coin Offerings (‘ICOs’) and the provision of certain services in relation to virtual currencies, the MFSA drafted and submitted to the Government the Virtual Financial Assets Act (‘the Act’). The Act will come into force on such date as the Minister for Digital Economy may establish by notice in the Gazette.
On 4 July 2018, the MFSA published a Consultation Paper on the Virtual Financial Assets Regulations to be issued under the Virtual Financial Assets Act which presents a draft Legal Notice setting out regulations on: [i] exemptions; [ii] fees; [iii] control of assets; and [iv] administrative penalties and appeals (‘the Virtual Financial Assets Regulations’). This consultation closes on 20 July 2018.
The Authority is now preparing the rules underlying and complementing the Act and the Virtual Financial Assets Regulations. The rules will provide further detailed regulation applicable to operators in this field of financial services. The MFSA is proposing the introduction of a rulebook, titled the ‘Virtual Financial Assets Rulebook’, which will be subdivided into three chapters as follows:
- Chapter 1 | Virtual Financial Assets Rules for VFA Agents
- Chapter 2 | Virtual Financial Assets Rules for Issuers of Virtual Financial Assets
- Chapter 3 | Virtual Financial Assets Rules for VFA Service Providers
The scope of this Consultation is to obtain industry feedback in relation to Chapter 1 of the Virtual Financial Assets Rulebook.
Dr Christopher P. Buttigieg - Director, Securities and Markets Supervision Unit, MFSA, stated:
‘The framework being prepared by the MFSA to regulate and supervise operators in the field of virtual financial assets seeks to ensure proper investor protection, market integrity and financial soundness. In terms of the Virtual Financial Assets Act, VFA Agents have the role of submitting applications to the MFSA on behalf of issuers and services providers. They will be required to carry out extensive due diligence on applicants in this field and have a very crucial role in contributing to a safe and sound financial system. The proposed rules will regulate the activity of VFA Agents to ensure that such entities are fit and proper for this purpose.’
The Consultation can be accessed through www.mfsa.mt/consultation and is open to the public from 12 July 2018 until 31 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 31 July 2018.
