Cryptocurrency regulations in Malta – Japan Security Token Business Association  
  1. HOME
  2. SERVICES
  3. Our Resources
  4. Cryptocurrency regulations in Malta

Our Resources

Our Resources

Cryptocurrency regulations in Malta

Contents

1 Laws regarding the cryptocurrency in Malta
2 Procedures needed for STO
3 Strengths and weaknesses of the laws
4 Reference

1 Laws that will be implemented in Malta

There are three laws regarding cryptocurrencies (July 2018)
1.Malta Digital Innovation Authority Act (MDAI)
2.Innovative Technological Arrangement and service Act(ITAS)
3.Virtual Financial Asset Act (VFA)
These laws were passed to reduce the risk for investors.

2 Procedures needed for STO

In order for a company to conduct STO, it has to take an examination on digital assets.
The test, called the Financial Investment Test, is 40 pages long.
Once you pass the test, you will have to set up a company in Malta and then hire an auditing company. Such companies are called VFA rents and have the official license.
The company must let a VFA agent conduct an audit at least once every half year.

3 The strengths and weaknesses of the laws

There are several strengths and weaknesses of the laws.

Strengths

・It will simplify management
・Assets will be protected

Weaknesses

・High cost
※There is a shortage of VFA agents, thus pushing the service cost

4 References

Legislation on security token offerings
Security Token Regulation
Russian article on Malta’s regulation
マルタにおける暗号通貨の規制動向