Chapter 590

In short

This law regulates Initial Virtual Financial Asset Offerings and Virtual Financial Assets, along with related matters. It establishes a framework for the issuance and use of these digital assets.

What it regulates

• Initial Virtual Financial Asset Offerings (IVFAOs)
• Virtual Financial Assets (VFAs)
• Licensing requirements for VFA services
• Prevention of market abuse in relation to VFAs

Who it concerns

• Issuers of Virtual Financial Assets in or from within Malta.
• Persons providing VFA services.

Key points

• An "initial virtual financial asset offering" is a method for an issuer to raise funds by offering virtual financial assets in exchange for funds.
• A "virtual financial asset" is a digital medium of exchange, unit of account, or store of value, but it is not electronic money, a financial instrument, or a virtual token.
• "Market abuse" includes insider dealing, unlawful disclosure of inside information, and market manipulation concerning any virtual financial asset.
• A "licence" is required to provide a VFA service or services, granted by the competent authority.