|Jan 23, 2018 11:53 PM||By: Guest Author | 14367 Views|
Malta’s Financial Services Authority (MFSA) issued the feedback it got on its proposed rules for collective investment schemes including cryptocurrencies on Monday.
The MFSA first inquired feedback on its proposed rulebook last October as part of a proposal to regulate professional investor funds (PIFs) that concentrate on cryptocurrencies. The proposal distinctly changed the structure from a standalone rulebook to an additional document for existing investor rules based on industry comments, according to the document.
The move came as a result of the "ample feedback" MFSA received demanding this change, according to the company.
While the final set of rules has not yet been published, the MFSA did state that, based on industry feedback, it has updated its present rules proposal to support for investments in both cryptocurrencies and tokens issued as part of an initial coin offering (ICO).
The agency also tried to clear up when these investment funds would count as financial instruments – and when the funds may not change as such – writing:
"Moreover, in its Discussion Paper the Authority has introduced a Financial Instrument Test to conclude under which circumstances a VC would be listed as a financial instrument, by the general principles of a policy statement published by the European Securities and Market Authority (‘ESMA’)."
Despite feedback to the contrary, the MFSA has voted only to allow qualifying investors to fund in cryptocurrency-based funds, meaning only investors who meet specific minimum requirements, such as a net value of at least 750,000 euros, between other factors.
The full set of rules is still being written and will be published pending further review, according to the Maltese government.