The government of Malta has been working on regulations for investment funds that focus on cryptocurrencies and investments in such a market.
The body that is overseeing the regulation is known as the Malta Financial Services Authority or MFSA. The MFSA has recently published a ‘rulebook’ that would help them to govern professional investments being made in the cryptocurrency industry. They claims are that this regulatory information is only meant to keep investors from high amounts of risk, and effectively help to stop large losses in the industry.
A statement released by the MFSA stated that “the MFSA is developing a rulebook to regulate Professional Investor Funds (PIFs) which have the investment in visual currencies as their investment objective. The MFSA is presently considering whether Alternative Investment Funds and Notified Alternative Investment Funds should also be allowed to invest in virtual currencies.”
The government has stated that it would accept inputs from the investors in the market that it is attempting to regulate. The goal is not to fight against investors but to work along side them to build a market that works best for everyone. The MFSA further stated that “the main proposals introduced within this new rulebook aim at safeguarding the interest of investors and the integrity of the financial market in the contact of virtual currencies.”
The government has high hopes that these new regulatory measures will help the industry on cryptocurrency grow within the nation of Malta. Since the industry is relatively new, and becoming more widely adopted, it has become increasingly popular as a way to invest. One of the main issues however remains the high amount of volatility in the market. This means that using cryptocurrency as a viable method of investing can only occur if the volatility ultimately lowers.