MFSA Issues Feedback Statement To The Consultation Document On Security Token Offering

Following the issue of the Malta Financial Services Authority's ("MFSA") consultation document on Security Token Offerings on 19^th July 2019 which aimed to pave the way to legal certainty for Security Token Offerings ("STOs") in the Maltese financial markets, the authority has today issued a feedback statement summarising the responses which the MFSA received and setting out the authority's response and position thereto.

This article shall summarise the authority's position on the feedback provided.

Defining STOs

The authority is of the opinion that the definition of transferable securities in Article 4(1) (44) of MiFID is loosely defined at EU level and is not harmonised within the laws of the Member States. Therefore, the MFSA highlighted the need to give guidance on the interpretation of what constitutes transferable securities by delving into the three formal requirements that are needed for an instrument to qualify as such, namely;