The Virtual Financial Assets Act (VFAA) which was approved as a Bill on 4th June, 2018 and later in July as a law is the main legal instrument that regulates ICOs in Malta. While issuers of ICOs should have physical presence in Malta, they should also be licensed by the Malta Financial Services Authority (MFSA), the local regulator for financial services activities.
Setting up an ICO
In order for an ICO to be in place, this has to be linked to a project that is well designed with specific goals to attract people to invest in it. It is highly recommended to conduct a marketing research to learn from ICO competitors and see how you can set up an attractive ICO.
When setting up an ICO, there will be the need of a number of professional services, from advertising and PR specialists to software specialists and lawyers.
With the help of these professional services, one will be able to present a well-documented White Paper that should be drawn up in accordance with the First Schedule of the VFA Act; thus outlining the project and addressing every specific requirement about the Initial Coin Offering, while also indicating the Token relevant to the project. Once the White Paper is in place, the ICO can be advertised to potential contributors.
Opening a bank account
We at Fairwinds Management Limited can introduce you to a local bank that is crypto friendly. Prior to this, we will also help you in the process known as ‘Know Your Customer’ (KYC) that is specifically adapted for businesses in this field. This will ease the process with the bank when opening an account.
Any business opening a bank account for ICOs has to respect two out of the following three criteria:
- The business is not a start-up
- ICO is already in place
- Have a credible and well-presented business plan
Our in-house legal team and financial professionals can assist you to complete the financial instrument test and on how to set up an ICO in Malta.