The MFSA has today published the Financial Instrument Test and a corresponding Guidance Note to the Financial Instrument Test.

The Financial Instrument Test is applicable to [i] issuers offering DLT assets to the public in or from within Malta; and [ii] persons providing any service and/or performing any activity, within the context of either the Virtual Financial Assets Act1 or traditional financial services legislation.

The purpose of the Financial Instrument Test is of determining whether a DLT asset qualifies as [i] Electronic Money as defined under the Third Schedule to the Financial Institutions Act2 ; [ii] a Financial Instrument as defined under the Second Schedule to the Investment Services Act3 , whether issued in Malta or otherwise; [iii] a Virtual Financial Asset; or [iv] a Virtual Token as defined under the Virtual Financial Assets Act.

The Guidance Note assists users to compile the Financial Instrument Test by providing clarity and consistency in the determination of the appropriate legislative framework applicable to the DLT asset being assessed and the respective services being offered thereto.

The MFSA invites interested parties and prospective users to test the Excel Sheet of the Financial Instrument Test and address any queries and feedback by email on [email protected] by not later than 13 August 2018. More information is available through the following link.