MFSA Publishes Financial Instruments Test

  • By:Melissa Speigner
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The MFSA has published the Financial Instruments Test and its corresponding Guidance Note, following the issuance of a previous consultation document on the matter. The Financial Instruments Test is applicable to issuers offering Distributed Ledger Technology (DLT) services to the public in or from within Malta, or anyone seeking to offer a service that falls under the Virtual Financial Services Act or traditional financial services legislation.

The purpose of the Financial Instrument Test is to allow users to establish whether a DLT asset qualifies as (i) Electronic Money (ii) a Financial Instrument (iii) a Virtual Financial Asset; or (iv) a Virtual Token as defined under the Virtual Financial Assets Act.

The test should be carried out by anyone aiming to launch an ICO in or from within Malta, so that they may establish what category their asset will fall under, and thereby determine the applicable law that would govern the ICO and the asset itself.

Corrieri Cilia is a leading law firm based in Malta specializing in the areas of international business and taxation. If you would like more information as to how the Financial Instruments Test may be applicable to your business, or if you need advice regarding blockchain, cryptocurrencies, or ICOs, please contact us on [email protected] to find out how we can help you.

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