Virtual Financial Assets Act

The Virtual Financial Assets Act, 2018 (The VFA Act) regulates Initial Virtual Financial Asset Offerings and Virtual Financial Assets.

The act covers the classification (as "virtual financial assets" or VFA) and launch of cryptocurrencies and also other services including cryptocurrency exchanges. It also sets forth rules regarding Initial Coin Offerings (ICO) (which may be "virtual financial asset offerings"). Licensing requirements are also set forth for those dealing with or issuing virtual financial assets including regulatory framework for ICOs and VFAs. Entities that wish to launch an ICO must first produce a white paper ("whitepaper") which will explain to the authority how the ICO will operate and how it is in accordance with Malta laws and regulations.

The Act also covers Distributed Ledger Technology (DLT) exchanges and including trading. It sets forth registration requirements, guidelines, due diligence requirements and interaction with the Malta Financial Services Authority.

The Act also includes regulations of advertising by issuers of Virtual Financial Assets and the appointment of an independent agent which would interact with the relevant competent authority regarding issues such as registration, a whitepaper and trading of the asset.

Document Details

Document Type: 
Authoring Country: 
Originating Country or Trade Block: 
Issue Status: 
Year of Document: 
2018
Date of Document: 
Tuesday, June 26, 2018

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