Malta to Classify ICO and Tokens
April 16, 2018
The Malta Financial Services Authority (MFSA) will test financial instruments and define legal status of digital tokens and ICO. This was mentioned in the message published at the agency’s official site last Friday.
The test is known to be made with respect to feedback proposals after the paper on crypto industry was discussed. The document was published by Malta’s authorities in November 30 last year and runs:
“Virtual token is a DLT asset which has no utility, value or application outside of the DLT platform on which it was issued and that cannot be exchanged for funds on such platform or with the issuer of such DLT asset.”
The test is to be conducted in the following way:
- Tokens fitting the classification above will be relieved from the Virtual Financial Asset Act (VFAA).
- Assets available at secondary markets proceed to the second stage: coins will be checked against compliance with definition of securities stipulated by the EU regulators. Tokens falling into this category will be regulated in accordance with Markets in Financial Instruments Directive (MiFID) and regarded as traditional financial instrument within the EU limits.
- All the rest assets are to be controlled by the VFAA rules.
According to MFSA, the VFAA will be available for public discussion up to May 4.
Remember that world’s major crypto platforms Binance and OKEx announced lately to open their branches on Malta.