An EU member state – Malta is progressing and is close to introducing a test that will distinguish when assets derived from ICOs are securities. According to a report in a consultation paper on Friday, the Malta Financial Service Authority [FSA] put forth a proposal for a so-called Financial Instrument Test. This will eventually be integrated with the proposed VFAA – Virtual Financial Asset Act. Malta is considered to be very supportive of such innovations and developments and has seen a number of exchanges approaching them, a few of which are mentioned below.
A Twitterati says:
“The proposed test will help to find out if the ICO’s token is a security or utility token”
Steve Tendon says:
“Malta is addressing generation 2″
OKEx, an exchange platform had approached the government to understand the regulatory plans for their new development. The Innovation authority of Malta will provide legal certainty for the use of blockchain technology and digital currencies.
Binance, the exchange giant had also recently approached the Maltese government to spread their wings in the European region and Malta, a pro-blockchain nation seemed to be a perfect choice. Malta’s existing pro-blockchain legislation and stability offered to financial institutions are what impressed Binance and after several reviews, they were convinced and decided to extend hands.
Tron’s Founder, Justin Sun had also expressed his support to Malta’s prime minister who had a vision of building a blockchain island. He had confirmed the news about Tron expanding to Malta and expressed gratitude to the Prime Minister. They also plan to invest and operate in Malta along with their strategic partner, Binance.
A discussion paper was released last year in November which initially introduced the concept, a test methodology designed on user feedback from the paper. According to the most recent paper, the test is 3 staged – Verify a distributed ledger technology [DLT] asset if it belongs to virtual tokens category; various securities defined by European financial regulators will be applied; a negative result in the second stage will lead to the third stage under which, ICO tokens regulated under proposed VFAA are reviewed.
The paper is open to the public until May 5th and is proposed to cover all ICOs organized in Malta, said the Agency.
Subscribe to AMBCrypto’s Newsletter
XRP and XLM Price Analysis: Rival coins show bearish pressure of slightly different magnitudes
Monero [XMR] paired with Bitcoin [BTC] and Ethereum [ETH] on KuCoin
Bitcoin [BTC]: Nouriel Roubini connects the fall of ‘criminal ICOs’ to the fall in BTC and ETH prices
Bitcoin [BTC] and Ethereum [ETH] spend millions to secure network against 51 percent attacks
Ethereum [ETH]’s Vitalik Buterin says he is ‘pretty sure’ that more ERC20 tokens will be released
Craig Wright’s Twitter account suspended after threatening harassment and libel lawsuits
Bitcoin [BTC] critic Agustin Carstens warns against central banks issuing virtual currencies
Qtum partnership with Zeus enables users to trade cryptocurrency on Apple Pay, Samsung Pay
Bitwise’s report to SEC suggests unregulated crypto exchanges fake 95% of Bitcoin [BTC] trading volume
Tron [TRX] DApp Weekly report: Justin Sun’s cryptocurrency lays down claims that Tron is better than Ethereum and EOS
Bitcoin [BTC] Futures in good stead against its Spot equivalent: Bitwise Report
- Bitcoin Cash
Bitcoin Cash [BCH] advocate Roger Ver shows his support for Silk Road founder Ross Ulbricht again
Ethereum [ETH] core dev clarifies acceptance of ProgPow in future hard forks
Bitcoin Lightning Network will never be production ready, says Bitcoin Cash [BCH] proponent Rick Falkvinge