MFSA issues clarifications on the Transitory Periods

The MFSA has issued clarifications on the applicability of the Transitory Provisions to ICO’s, Exchanges and other VFA Service Providers operating before 1st November 2018.

ICO Transitory Periods: The transitory period applies to those who on 1 November 2018 were undertaking an activity in terms of Article 3 of the VFA Act, which, inter alia, refers to the

offering of a VFA to the public in or from within Malta’.

In a ‘Circular to the Industry on the Transitory Provision Under Article 62 of the VFA Act’, dated 31 October 2018, the MFSA noted there have been a number of queries on what constitutes an ‘offering to the public’. In this regard, the Regulator announced that it will be publishing a definition of ‘offer of VFAs to the public’. This definition will be included in a revised version of the Glossary of Terms published on October 17.

EXCHANGES / SERVICE PROVIDERS: With reference to the provision of VFA Services (including exchanges), the MFSA said that it has been receiving numerous queries on the level of operations required for a person to be determined as providing a VFA Service, and thus be in a position to benefit from the 12-month transitory period. The MFSA clarified that

if a person has commenced its operations and has the ability to onboard-clients’, it may avail itself of the transitory period under the Act.