In November, Malta passed a 63-page regulation detailing the requirements for issuing virtual financial assets, better known as cryptocurrencies, cryptoassets or tokens. While many in the crypto community welcome this change as the beginning of the end of the “Wild West” stage, it has both benefits and downsides to issuers of new tokens. When it comes to ICO whitepaper writing, it’s new territory.
As one of the first jurisdictions to pass clear and detailed requirements around ICOs, including details on ICO whitepapers, Malta has attracted a tremendous amount of attention as a crypto-friendly jurisdiction. On the one hand, clarity in regulation provides a level of protection and assurance for founders and investors. Just knowing what is and isn’t acceptable allows companies a level of certainty when establishing themselves. It’s impossible to know if you are going to run amiss of the law if you don’t know what the law is. As of November, the “Virtual Financial Assets Act, 2018” gives issuers of “virtual financial assets” the assurance of having a guideline to follow.