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Following the publication of the European Securities and Markets Authority’s statements highlighting the risks posed by Initial Coin Offerings (“ICOs”) to investors and investment firms, the Malta Financial Services Authority (the “MFSA”), Malta’s single regulator for the financial services industry, has issued a highly awaited discussion paper outlining the local regulatory approach to be taken in connection with ICOs, virtual currencies and market participants operating within the sector.

The launch of the discussion paper brings Malta one step closer to the implementation of a framework which would lay to rest the regulatory limbo characterising the field to date and in turn stimulate promoters to set up innovative business ventures within the confines of the MFSA’s requirements. On the flipside, such a framework will enhance investor protection and residually boost investor confidence in the digital economy.

This document does not purport to give legal, financial or tax advice. Should you require further information or legal assistance, please do not hesitate to contact Dr Katya Tua or Dr. Luigi Farrugia.