Malta was one of the first jurisdictions to introduce a framework to regulate crypto-asset business way back in 2018. The Virtual Financial Assets (VFA) Act and its underlying framework brought about legal and regulatory certainty for operators wishing to provide services in relation to assets that are intrinsically dependent on, or utilise, Distributed Ledger Technology, in or from Malta. Having a regulatory framework governing crypto-asset activity puts the jurisdiction in an expedient position to adopt the proposed Markets in Crypto-Assets Regulation (MiCA) which forms part of the European Commission’s Digital Finance Package currently being negotiated at European-level. The transition from a home-grown regime to a European one is expected to be smooth and pragmatic.
Digital Finance goes beyond crypto. It encompasses a wider array of technology-enabled financial services offerings. In this context, the Malta Financial Services Authority (MFSA) proceeded to launch a FinTech Strategy and a FinTech Regulatory Sandbox with the objective of enabling FinTech adoption within industry incumbents and start-ups alike, and establishing a contained environment for FinTech operators to test their innovative products and services. Such initiatives show the jurisdiction’s openness in considering digitally innovative business proposals within financial services, supporting the fulfilment of Europe’s Digital Finance Strategy.
Mamo TCV’s reputation as one of Malta’s leading practices in the fields of technology and finance is without question. With the firm taking an active part throughout the various consultation processes which were undertaken by the Maltese Government and the MFSA over the past years, an excellent relationship was forged with all the involved entities and authorities, built on a mutual understanding of the policies regulating this sector. Our FinTech team is comprised of seasoned experts stemming from a variety of legal backgrounds, including finance, technology and corporate law.