Malta Proposes Rules for Cryptocurrency Investment Funds

Malta's government has proposed new rules for investment funds that plan to invest in cryptocurrencies.

AccessTimeIconOct 24, 2017 at 5:00 p.m. UTC
Updated Aug 18, 2021 at 7:16 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The government of Malta is seeking public feedback on proposed rules for investment funds that focus on cryptocurrencies.

The Malta Financial Services Authority (MFSA) has published a proposed rulebook, dated Oct. 23, that would govern how professional investment efforts solicit stakeholders, manage risks and govern themselves. The release, subject to further alteration after the consultation period ends next month, represents the latest step by the Maltese government to implement public policy changes in light of the technology.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • In statements, the MSFA said that its work could grow to encompass a range of investment fund types, explaining:

    "The MFSA is developing a rulebook to regulate Professional Investor Funds ("PIFs") which have the investment in virtual currencies as their investment objective. The MFSA is presently considering whether Alternative Investment Funds and Notified Alternative Investment Funds should also be allowed to invest in virtual currencies."

    The government said that it would accept input from potential stakeholders through Nov. 10, after it which is expected to audit the results and adjust the proposed rules accordingly.

    Ultimately, the regulator said that it was approaching the new ruleset from the perspective of investor protection.

    "The main proposals introduced within this new rulebook aim at safeguarding the interest of investors and the integrity of the financial market in the context of virtual currencies," the MFSA said in a statement.

    The full proposed rulebook can be found below:

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.