Malta Proposes Financial Instrument Test for Cryptocurrency Companies
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The Malta Financial Services Authority has released a consultation paper relating to its ongoing cryptocurrency regulation process.

The paper follows a discussion paper published on the 30th of November 2017 in which the regulatory authority proposed a mandatory test as a method of determining the legal status of initial coin offerings, virtual currencies and related service providers. Specifically, the ‘Financial Instrument Test’ could be used to decide if a DLT-related company, asset or service “is encompassed under (i) the existing EU legislation and the corresponding national legislation, (ii) the proposed Virtual Financial Assets Act or (iii) is otherwise exempt.”

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Source: MFSA

“It is envisaged that the Test will be applicable both within the context of an Initial Coin Offering as well as during the intermediation…