MFSA issues consultation paper on the Financial Instrument Test for Crypto Assets
16 April 2018
On the 13th of April, The Malta Financial Services Authority issued a Consultation Paper on the Financial Instrument Test which will be applied for the determination of DLT assets.
The paper brings along with it a glossary of new terms that are to be utilised within the local framework. The objective aims to provide for legal certainty in an industry which is still surrounded with ambiguity in the majority of other jurisdictions. The paper seeks to provide clarity on the determination between utility and security tokens through a predetermined checklist that will be assessed by qualified professionals.
The successful implementation of such system would see Malta become one of the leaders of the blockchain market, since it would be one of the first jurisdictions to actually provide for the classification of DLT assets in a clear and codified manner.
The consultation is open to the public from the 13th April 2018 until the 4th of May.
BDO Malta will be continue to keep abreast of local and international developments, in order to be in a prime position to assist clients with any queries which might arise in respect thereto.
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