Fintech—Malta—Q&A guide

The following TMT practice note provides comprehensive and up to date legal information covering:

  • Fintech—Malta—Q&A guide
  • 1. What is the general state of fintech innovation in your jurisdiction?
  • 2. Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?
  • 3. Which bodies regulate the provision of fintech products and services?
  • 4. Which activities trigger a licensing requirement in your jurisdiction?
  • 5. Is consumer lending regulated in your jurisdiction?
  • 6. Are there restrictions on trading loans in the secondary market in your jurisdiction?
  • 7. Describe the regulatory regime for collective investment schemes and whether fintech companies providing alternative finance products or services would fall within its scope.
  • 8. Are managers of alternative investment funds regulated?
  • 9. Describe any specific regulation of peer-to-peer or marketplace lending in your jurisdiction.
  • More...

Fintech—Malta—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to fintech in Malta published as part of the Lexology Getting the Deal Through series by Law Business Research (published: July 2020).

Authors: Ganado Advocates—Leonard Bonello; James Debono

1. What is the general state of fintech innovation in your jurisdiction?

Malta’s reputation as the ‘blockchain island’ is a testament to its positive approach to the fintech industry. Malta was a pioneer in regulating distributed ledger technologies and cryptocurrencies through the enactment of:

  1. the Virtual Financial Assets Act (Chapter 590 of the Laws of Malta);

  2. the Malta Digital Innovation Authority Act (Chapter 591 of the Laws of Malta) (MDIAA); and

  3. the Innovative Technology Arrangements and Services Act (Chapter 592 of the Laws of Malta).

Other prominent fintech areas attracting investment in Malta relate to e-payment services and insurtech. Furthermore, the Malta Financial Services Authority (MFSA) is also buttressing this technology revolution by setting up a dedicated FinTech and Innovation function. The MFSA is also driving the long-term fintech strategy targeting both start-ups and industry scale-ups with the aim of establishing Malta as an international fintech hub while promoting the infusion of technology solutions in the financial world.

2. Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?

The Maltese government has always given the fintech industry priority in policy formation. The

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