Publications

VFA Agent – MFSA’s New Guard And Sentry

Authors: Leonard Bonello, James Debono
Published on September 20, 2018
Tags: , , , ,
Practices: Fintech & Blockchain
The new legal and regulatory dimension of initial virtual financial asset offerings (VFAOs) which is shaping up in Malta seeks to unveil the legal uncertainty clouding the crypto market while safeguarding investors’ interests by mitigating the legal and platform risks therein.

Re-connecting issuers and investors through Distributed Ledger Technology

Authors: Nicholas Curmi, James Debono
Published on September 3, 2018
Tags: ,
Practices: Fintech & Blockchain
In the modern digital age, the advent of computerisation has created pathways and connected us in ways we could never have imagined. This is in stark contrast to how the capital markets have developed, where investors and issuers have never been further apart than with the current system of intermediated holdings of securities.

Maltese Technology Foundations – Initial Thoughts on an Important Proposal

Authors: Max Ganado
Published on August 28, 2018
Tags: , , , , ,
Practices: Fintech & Blockchain, Trusts & Foundations
Executive Summary

Over the past year the Government of Malta has been fully supportive of initiatives taken in the blockchain space culminating in three Acts of Parliament which will come into effect in October 2018. The idea of extending legal personality to innovative technology arrangements has been under study since November 2017 and is the subject of planned legislation. Innovative technology arrangements, which are referred to in Maltese law as a combination of DLT and smart contracts, provide a context which is very similar to that of other operating assets which in the past were afforded legal powers and considered as legal persons to support them in achieving their declared purpose, addressing the important issues of legal capacity and liability, apart from other important issues. There are some disagreements on whether a centralised legal device is a good solution for decentralized technology. Some policy choices in support of legal certainty are also proposed, particularly limiting the benefits deriving from the concept of legal personality for innovative technology arrangements only to registered Maltese innovative technology foundations.

Bespoke requirements targeting Investment Based Crowdfunding in Malta

Authors: James Debono, Paul Falzon
Published on August 1, 2018
Tags: ,
Practices: Fintech & Blockchain
Crowdfunding, which refers to an open call to the public to raise capital targeted for a specific project, is developing rather rapidly across the globe. It is augmenting economic growth through new and increasing flows of credit to SMEs. This cost-efficient, highly accessible form of finance is enabling investors to diversify their portfolio as well as providing them a low-cost alternative for channeling savings to the real economy. In light of the EUR 4.2 billion (circa) raised through crowdfunding platforms in the EU in 2015, it comes to no surprise that one of the main objectives set forth in the Capital Markets Union Action Plan is to strengthen the different sources of alternative finance, including crowdfunding.