In light of the MFSA Vision 2021, the Authority has just launched a Consultation Paper which underlines the importance of Security Token Offering (STO). The Consultation Paper signifies the first step in the revision of the local capital markets regulatory framework. The main objective of this consultative document is to obtain stakeholders’ perspective on a policy which does not stifle investor protection, financial integrity and financial stability, despite supporting innovation and new technologies for financial services.

The Paper is mainly divided into six sections, namely:

1. Defining STOs
2. Applications for approval
3. Additional ongoing obligations
4. Secondary Markets
5. Market Abuse Regulation
6. Post-Trade Settlement

The STO Policy being proposed considers the evolving needs of the industry while ensuring the highest of standards in terms of investor protection and market integrity. The MFSA is currently striving to revise a Capital Markets Strategy and in doing so, the Authority is constantly analysing and refining the functioning of our capital markets, so as to provide a better environment for the financing of private sector innovation, investment and growth. As part of the Authority’s Capital Markets Strategy, and consequent to the MFSA’s Fintech Strategy and Virtual Financial Assets Framework (which was launched in 2018), the divide between a traditional securities offering and a technology-enabled securities offering will be significantly narrowed.

Interested parties are encouraged to send any feedback on this Consultation Document via email to
This consultation is open to the public until 30 August 2019.