Proposed Regulation of Collective Investment Schemes investing in Virtual Currencies (MFSA)

On 22.01.2018 MFSA published the Feedback Statement on the Proposed Regulation of Collective Investment Schemes investing in Virtual Currencies issued by MFSA on 23.10.2017.

Based on the industry feedback, MFSA would include additional requirements pertaining to Professional Investor Funds (PIFs) investing in Virtual Currencies (VCs) as supplementary license conditions and not as a standalone rulebook, as proposed originally. The regulatory framework will be applicable to PIFs investing in VCs either directly or indirectly through trading companies and/or special purpose vehicles. Any other type of indirect investment would fall outside the scope of the proposed regulatory framework.

The regulation may be extended to AIFs and Notified AIFs, subject to the feedback received on the Discussion Paper on Initial Coin Offerings, Virtual Currencies and related Service Providers issued by the MFSA on 30 Novemhttps://www.mfsa.com.mt/pages/announcements.aspx?id=9ber 2017 (deadline for submitting comments is on 18 January 2018).

In addition to SICAV and INVCO legal structures for PIFs making investments in VC's, the regime will be extended to limited partnerships and unit trusts. Cellular structures will also be available under the framework, including Incorporated Cell Companies (“ICCs”) or Incorporated Cells (“ICs”) of either a SICAV ICC or a Recognized Incorporated Cell Company (“RICC”).

https://www.mfsa.com.mt/pages/announcements.aspx?id=9