DLT & Fintech
We offer comprehensive regulatory and transactional assistance to businesses operating in the distributed ledger technology and fintech space.
Distributed ledger technology (“DLT”), of which blockchain is a key example, has the potential to disrupt those industries where end users could benefit from decentralisation.
Decentralisation is a concept in which parties to a transaction are able to transact directly with one another without the necessity of intermediaries that are ordinarily employed to enable such transaction.
Being a relatively novel technology, many are the solutions that are being proposed that are yet to be tested in the market. Only a selected few will achieve the desired commercial outcome, as an increasing number of participants attempt to deliver competing solutions that seek to radically change the way we transact with each other.
Our DLT and fintech practice brings together financial regulatory, data protection, intellectual property, KYC and e-commerce issues and applies them to the nuances surrounding the new wave of regulations on DLT, related virtual currencies and DLT service providers.
With these tools, we are able to guide clients prepare the required documentation and by curating important details that can differentiate an initial coin offering (“ICO”) from an security token offering (“STO”) or a related service from one regulatory regime to another.
Our in-depth understanding of distributed ledger technology, token generating events and the ecosystem of related service providers makes us well positioned to advise and assist clients on all aspects of:
- Regulatory profiling of ICOs or STOs pursuant to the ‘financial instrument test’ set forth by the MFSA
- Licensing of brokers, dealers, portfolio managers, sponsors and exchanges of virtual currencies
- Anti-money laundering regulations, due diligence and KYC implications of ICOs and related service providers
- Business formation
- Review of marketing material and websites
- Advising on associated aspects of intellectual property, data protection, regulatory compliance and e-commerce.