Following the publication of a Consultation Document on Security Token Offerings by the Malta Financial Services Authority (MFSA), the Authority has published a statement containing feedback received from 18 industry participants and stakeholders, including national agencies and regulated firms. The Consultation aimed at establishing MFSA’s position concerning Distributed Ledger Technologies (DLT), within the context of primary issuing, secondary trading, and settlement of financial instruments qualifying as transferable securities.
Since business models can have different structures and may vary in the way in which DLT is employed, the MFSA agrees with the feedback received from the 18 participants to carry out a case-by-case evaluation, instead of a one-size-fits-all approach.
MFSA’s Deputy Head, Securities & Markets Supervision, Lorraine Vella explained that “this Feedback Statement will pave the way for legal certainty around Security Token Offerings (STOs) in the Maltese financial markets. It also communicates the Authority’s expectations and its plan to promote innovation, by creating an optimal regulatory environment for the issuing and trading of DLT Assets which fall within the remit of European securities legislation.”