Foundations to carry out trade and issue tokens

Generally, foundations registered in Malta may not trade or carry out commercial activities. Having said that, foundations may be endowed with commercial property or other profit making enterprise as long as it is the passive owner of the asset. Some flexibility in this context is afforded to foundations in some other specific scenarios. However, by…

New Gaming Act approved by Parliament in Malta

On Tuesday 8th May, the Maltese Parliament approved the third and final reading of the new Gaming Act. This Act provides an overhaul of the current gaming regulation and licensing process in Malta and strengthens the Malta Gaming Authority’s supervisory role and enforcement functions. This new framework will also segment the role of a Key…

Proposal for legislation in Malta on blockchain and intermediaries dealing in virtual currencies

On the 16th February, 2018 the Government of Malta issued a consultation document on the proposed regulation of initial coin offerings (ICOs), decentralised ledger technology platforms (DLT platforms) and brokers, exchanges and other intermediaries dealing in virtual currencies and similar assets in or from Malta. The proposal envisages the following three pieces of legislation: the Malta…

Incentives for Family Businesses

Until the 1st April 2018, an exceptional incentive is available providing that stamp duty at the rate of 1.5% shall be payable by family members transferring gratuitously shares and immovable property used in a family business to other eligible family members. Upon the lapse of this period, the following terms would apply with respect to…

New Laws to implement the provisions on the Register of Beneficial Owners in the IVth AML Directive

On the 1st January, 2018, the following Regulations came into force in Malta, implementing the relevant provisions on beneficial ownership information of Directive (EU) 2015/849 of the European Parliament and the Council of 20 May 2015: Legal Notice 376 of 2017 – Civil Code (Second Schedule) (Register of Beneficial Owners – Associations) Regulations, 2017; Legal…

Consulation Document issued by the MFSA on the proposed regulation of collective investment schements investing in virtual currencies

On the 23rd October, 2017, the MFSA issued a Consultation Document on the proposed regulation of collective investment schemes investing in virtual currencies. Below is a summary of the main proposals, which require the scheme and in certain cases its service providers to: Prove competence in the field of information technology, virtual currencies and their…