The regulation of crypto assets in Malta : the Virtual Financial Assets Act and beyond

Abstract

This paper critically examines the regulation of crypto assets in Malta, which has become a jurisdiction of choice for operators in this field. It analyses the Virtual Financial Assets Act [VFAA] and the MFSA’s approach to the regulation of this new field of financial services. The paper examines the manner in which the VFAA achieves the high-level objectives of financial regulation set by international standard setters, such as International Organisation of Securities Commissions (IOSCO), being: [i] investor protection, [ii] market integrity and [iii] financial stability. The central argument of the paper is that the VFAA establishes a framework that supports the innovation and new technologies for financial services in the area of crypto assets, whilst ensuring the effective achievement of the mentioned objectives of regulation.