How to Launch an ICO in Malta

Updated on Wednesday 31st October 2018

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Malta is a great business destination for setting up a hedge fund startup, but also a leading country for launching initial coin offerings (ICOs). This is due to the fact that the small Maltese state provides a solid legal framework and it is also the first country at a global level that has created a legislative framework for ICOs

Why choose Malta for ICOs?  

Although there are numerous attractive jurisdictions for opening an investment fund in the field of cryptocurrencies, Malta stands out as an appealing investment destination due to the fact that the investors will benefit from a certain level of stability regarding their investments, considering the newly created legislation. It is important to know the following: 
  • from 1st of November 2018, companies involved in cryptocurrency investments or blockchain and ICOs will need to obtain licensed certifications;
  • investments in this sector will be partly monitored by the local governmental agencies, in order to reduce the risk of fraud associated with ICOs;
  • investment companies involved in ICO activities will need to follow the regulations of the Virtual Financial Assets Act
  • upon incorporation, an investment company that performs an ICO activity must prepare detailed documents regarding the feasibility of the investment project

Regulatory body for cryptocurrency investments in Malta 

Businessmen who are interested in how to start a fund in Malta in the field of ICOs should also know that the country has recently created an institution which monitors the activities of businesses operating in this sector. The Malta Digital Innovation Authority (MDIA) represents the highest body which regulates the activities of blockchain and cryptocurrency investment companies
Any investment company or investment fund operating in this sector will need to obtain an approval from MDIA, which also has the right to impose punitive measures in the situation in which the applicable legislation is not respected by a local or foreign fund. Businessmen are invited to contact our team of affiliates in Malta for more details on other regulations applicable to ICO investments