Virtual Financial Assets Act (Amendment) Regulations, 2021

L.N. 106 of 2021

VIRTUAL FINANCIAL ASSETS ACT

(CAP. 590)

Virtual Financial Assets Act (Amendment) Regulations, 2021

IN EXERCISE of the powers conferred by paragraphs (a) and (n)

of sub-article (1) of article 38 of the Virtual Financial Assets Act, the

Minister responsible for the regulation of financial services, acting on

the advice of and in consultation with the Malta Financial Services

Authority, has made the following regulations:-

(1) The title of these regulations is the Virtual Financial

Assets Act (Amendment) Regulations, 2021 and these regulations

shall be read and construed as one with the Virtual Financial Assets

Act, hereinafter referred to as "the principal Act".

(2) These regulations seek to clarify the definition "VFA

exchange" in article 2(2) of the principal Act and include the "Transfer

of virtual financial assets" as a new VFA service under the Second

Schedule to the principal Act.

In sub-article (2) of article 2 of the principal Act, for the

definition "VFA exchange" there shall be substituted the following

" "VFA exchange" means a DLT exchange for virtual

financial assets, operating in or from within Malta, within which

multiple third party buying and selling interests for virtual

financial assets can interact in a manner that results in a contract,

by exchanging one virtual financial asset for another or a virtual

financial asset for fiat currency that is legal tender or a fiat

currency that is legal tender for a virtual financial asset;".

In item 8 of the Second Schedule to the principal Act, for

the word "exchange.", there shall be substituted the word "exchange",

and immediately thereafter there shall be added the following new

item

"9. Transfer of virtual financial assets

Conducting a transaction on behalf of a third party that

moves a virtual financial asset from one virtual financial asset

address or account to another.".

€0.09