LegislationApril 16, 2018 by David Nugent

Malta Planning Robust Cyptocurrency Financial Instrument Tests

MaltaWhile a number of governments have come down hard on the cryptocurrency industry in recent months, there are still a few governments who are open to regulating the cryptocurrency industry as they believe the market has a bright future.

Malta is one such region that has embraced the cryptocurrency industry and is now taking steps to better regulate the industry.

The Malta Financial Services Authority (MFSA) recently released a paper on an essential part of its cryptocurrency regulation process. The MFSA had earlier released a paper in 2017 that proposed a test on how to determine the legal status of initial coin offerings (ICO) and other digital currency products. The latest paper discusses a Financial Instrument Test that would help determine whether a digital company, asset or service is covered by existing EU legislation, the upcoming Virtual Assets Act, or is not covered at all.

The test is projected to cover everything from ICOs to dealing with digital assets as long as the deals are in or originating from Malta. The proposal for the test was met with approval. The paper was published on April 13 and comprised of 40 pages that lay out what financial instruments are under European law and how cryptocurrencies fit into the laws. It also has 19 questions that cryptocurrency experts are expected to review and give feedback by May 4.

Two Major Cryptocurreny Exchanges Plan Move To Malta

Malta has become a very friendly place for cryptocurrency businesses and the steps taken by the government to regulate the cryptocurrency industry has attracted cryptocurrency companies. There are already two major exchanges that plan to move into the jurisdiction.

In a statement, Joseph Muscat, Prime Minister of Malta said

They are not saying that they are coming to Malta because they can do what they want. They are saying they are coming because Malta is ready to regulate us, and we are bringing the consumer the peace of mind that there are people regulating this system

Chinese company Binance is a huge name in the cryptocurrency world. The company which started out in Shanghai is one of those companies looking to enter Malta and is already in talks with quite a few banks in Malta. The company hopes to set-up an office in Malta soon. OKEx is another cryptocurrency company that plans to move to the island. The company’s representatives have already met with Malta’s regulators and government to better understand the local laws and how it can fit well into the county’s cryptocurrency plans. The company was actually part of the discussions that influenced the upcoming regulations.

The company is looking forward to working with the Maltese government to ensure that it maintains its cryptocurrency-friendly laws and environment. With its current mindset, Malta can expect to see more cryptocurrency investment in the future.