MFSA on investments in virtual currencies

The MFSA is currently considering the manner in which rules may be issued to ensure market integrity and protection to the investor in the context of investments in virtual currencies.  The MFSA has thus issued a consultation document publishing a framework for such regulation and is inviting stake holders to provide comments and feedback. The […]

Written By ACT Team

On October 30, 2017
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The MFSA is currently considering the manner in which rules may be issued to ensure market integrity and protection to the investor in the context of investments in virtual currencies.  The MFSA has thus issued a consultation document publishing a framework for such regulation and is inviting stake holders to provide comments and feedback.

The MFSA is developing a rule book to regulate Professional Investor Funds (PIFs), which have the investment in virtual currencies as their investment objective.  The MFSA is presently considering whether Alternative Investment Funds and Notified Alternative Investment Funds should also be allowed to invest in virtual currencies.

It has for the time being been decided that the legal structures for PIFs making such investments should be limited to SICAV and INVCO structures, which are required to have a board of directors responsible for the overall conduct of business of the collective investment schemes.  The rule book published for consultation, specifically aim to mitigate the potential risks of investments in virtual currencies.  The rule book imposes specific requirements on the governing bodies of the collective investment schemes and their service providers in relation to competence, risk warnings, quality assessment, risk management and valuation.

Comments may be sent to the MFSA by not later than the 10th November 2017.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].