Malta’s financial regulator promotes cryptocurrency investment rulemaking

nRunaway Commentary: The Malta Financial Services Authority has since started actively developing a series of rules for cryptocurrency investment funds and solicited feedback from the public to better align regulatory measures with popular opinion. The agency has posted these feedbacks and said the rules manual has been revised on the basis of that. Although the entire set of rules has not been completed, people have learned some details, such as the eligibility of investors.n
nTranslation: Inan
The Malta Financial Services Authority (MFSA) announced on Monday the feedback received on the proposed rules for its collective cryptocurrency investment plan.n
MFSA first sought feedback in October last year on its proposed rules manual in the hope of managing a Professional Investors Fund (PIF) focused on cryptocurrencies. From the document’s point of view, the proposal has dramatically changed the structure, moving from an independent rules manual to an addition to existing investor rules based on industry commentary.n
According to the agency, the reason for such a change is that many of the feedbacks received by the MFSA call for such a shift.n
Although the final version of these rules is not yet published, MFSA made it clear that the existing rule proposal has been updated based on industry feedback and will allow people to invest in cryptocurrencies and tokens issued through the ICO.n
The agency also tried to explain under what conditions these investment funds can be regarded as financial instruments, the document wrote:n
n”In addition, in its discussion paper, the Authority proposed that financial instruments be tested in accordance with the general principles of the ESMA policy statement to determine under what circumstances a VC may be classified as a financial instrument.”n
nDespite the contrary feedback, MFSA decided to allow only qualifying investors to invest in cryptocurrency-based funds, meaning that only those investors that meet the minimum investment requirements, such as a net worth of at least € 750,000, will be able to participate in such activities.n
According to the agency, the entire set of rules is still under preparation and will be announced on further review.n

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