Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 28 AUGUST 2018

The Financial Instrument Test

KINANIS LLC
KINANIS LLC
Contributor
KINANIS LLC

KINANIS LLC

Kinanis LLC, a law and consulting firm, is one of the leading business law firms in Cyprus and...

View firm profile
Explore more from KINANIS LLC

By enacting the Virtual Financial Assets Act (VFAA), the Maltese Government has regulated the Blockchain / ICO / DLT industry.

MaltaTechnology
Francesco Sultana
Francesco Sultana
Christos Kinanis
Christos Kinanis
Charalambos Meivatzis
Charalambos Meivatzis
Author LinkedIn connections

A. INTRODUCTION

By enacting the Virtual Financial Assets Act (VFAA), the Maltese Government has regulated the Blockchain / ICO / DLT industry. The law appoints the Malta Financial Services Authority (MFSA) as the designated authority to oversee this business.

Since this industry has elements of the Financial Service Regulations (namely MiFID), it is important to clearly distinguish one from the other.

In order to ensure a clear difference, the MFSA has sought to further clarify the instances under which the new legislation applies. It has done this by introducing the Financial Instrument Test, which will be analysed below.

B. PURPOSE OF THE TEST

The objective of the Financial Instrument Test (hereinafter 'the Test') is to determine whether a Distributed Ledger Technology ('DLT') asset falls under:

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Malta Implements National Framework For The EU Cyber Resilience Act

Malta has published Legal Notice 238 of 2026, establishing the national regulatory framework for the EU's Cyber Resilience Act and designating the Malta Digital Innovation Authority as the central enforcement body. With vulnerability reporting obligations already in effect since September 11, 2026, manufacturers of digital products must now navigate new compliance requirements ahead of the regulation's full application in December 2027.
MaltaTechnology
Fenech Farrugia Fiott Legal (FFL)
Fenech Farrugia Fiott Legal (FFL)
Article

EU AI Act Update: What Will Apply From 2 August 2026 And What Is Being Postponed?

The Council of the European Union has reached a provisional agreement on the Digital Omnibus Regulation, introducing significant amendments to the EU AI Act that will reshape compliance timelines and expand prohibited practices. Key changes include postponing high-risk AI system obligations to December 2027, accelerating transparency requirements for AI-generated content, and introducing new bans on non-consensual intimate imagery generation.
MaltaTechnology
Mamo TCV Advocates
Mamo TCV Advocates
Article

EU Reaches Compromise On PSD3 And PSR: Tighter Harmonisation, Crypto Rules And Stronger Consumer Transparency.

The European Union has reached a compromise on the Payment Services Directive 3 (PSD3) and Payment Services Regulation (PSR), introducing sweeping changes to harmonise payment rules across Member States. The package addresses fragmentation under PSD2 by migrating conduct-of-business rules into directly applicable regulations, while introducing new provisions on cash access, cryptocurrency payment services, fraud liability, and open banking.
European UnionTechnology
WH Partners
WH Partners
Article

The Enforcement Shift: Why Cyber-Negligence In Malta Now Carries Direct Liability

Recent legislative changes in Malta have fundamentally transformed cybersecurity from a technical IT concern into a critical matter of corporate governance and legal liability. With the introduction of Legal Notice 89 of 2026 and the rise of AI-enabled cyber threats, organizations now face direct enforcement mechanisms and heightened expectations for cyber-risk management that can expose both companies and their directors to significant consequences.
MaltaTechnology
GVZH Advocates
GVZH Advocates