Malta Utility Token Offering

GDP GROWTH: 6.6% in 2017 REGULATORS: Malta Financial Services Authority, Malta Digital Innovation Authority TIMEZONE:Central European Time Zone (UTC+01:00) FINANCIAL SERVICES FRAMEWORK:EU and OECD approved FINANCIAL SECTOR:25% Annual Growth FINANCIAL TECHNOLOGY LAW: First in World

• Utility Token Offerings: No Regulatory Requirements
• Rules and Documentation in English
• Consumer Protection, Market Integrity and Financial Stability
• Reputable Jurisdiction
• Attractive Corporate Tax Regime

The legal framework specifically designed by the Government of Malta to regulate virtual financial assets (VFAs) and virtual financial assets related services (‘VFA Services’) comprises a series of three laws: 

•     the Malta Digital Innovation Authority Act (MDIA Act) establishing the Malta Digital Innovation Authority (MDIA); 
•     the Innovative Technology Arrangements and Services Act (ITAS Act) providing for registration of technology service providers and the certification of technology arrangements; and 
•     the Virtual Financial Assets Act (VFAA) mainly regulating initial coin offerings (ICOs), VFA service providers and VFA agents. 

The Malta Financial Services Authority (MFSA) is the lead regulator for VFAs and VFA service providers. However, certain innovative technology arrangements, including DLTs and smart contracts may be referred to the Malta Digital Innovation Authority for further certification. 
A utility token offering is outside the VFAA’s scope. The prior determination of a DLT asset as a utility token, however, is to be undertaken in line with the VFAA and the MFSA’s guidance notes.
 

• Undertake Fit & Proper Test
• Appointment of VFA Agent
• Token: Limited Utility and Non-Exchangeability
• Undertake Financial Instrument Test