On the 24^th July 2018, the MFSA published the Financial Instrument Test together with an explanatory Guidance Note thereto.

The Financial Instrument Test is applicable to

• issuers offering DLT assets to the public in or from within Malta; and
• persons providing any service and/or performing any activity, within the context of either the Virtual Financial Assets Act or traditional financial services legislation.

The Financial Instrument Test is to be applied in in the context of determining whether a DLT asset qualifies as (i) Electronic Money as defined under the Third Schedule to the Financial Institutions Act; (ii) a Financial Instrument as defined under the Second Schedule to the Investment Services Act, 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 aim of the supporting Guidance Note is to assist users executing 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.