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.