Malta Approves Favorable Cryptocurrency Bills in Next Step as a Blockchain Island

The Maltese Parliament has passed laws that set regulatory framework for blockchain, cryptocurrency and DLT in its next efforts to make Malta one of the most desirable locations for setting up blockchain enterprises.

The bills detail the regulation of ICOs and cryptocurrencies and the process for setting up crypto-based businesses in Malta. The three bills are “The Virtual Financial Assets Act” “The Malta Digital Innovation Authority Act” and “The Innovative Technology Arrangements and Services Act”.

The Virtual Financial Assets Act (VFA)

This bill requires new companies raising capital through ICOs to publish white papers that outline a detailed description for the entire project. Issuers are also going to make their financial history public.

The Malta Digital Innovation Authority Act

This law formalizes regulatory procedures for the cryptocurrency and the blockchain industry. It also creates the Malta Digital Innovation Authority (MDIA), which would work as the regulatory body for the industry. The purposes of the MDIA will be accomplished by a Board of Governors, headed by a CEO.

Technology Arrangements and Services Bill

This bill details the registration and certification of technology service providers and technology arrangements, and it directs on the registration of exchanges in Malta. Industry insiders suppose this law was established to make Malta the first country in the world to provide an official set of regulations for operators in the blockchain, cryptocurrency and DLT space.

Furthermore, having a strong technical perspective to blockchain, cryptocurrency and the DLT space also allows for Malta to provide flexibility for their newly passed laws. While the laws are indeed robust, the government is taking a “principle-based” approach and will tailor the laws as they see fit based on the ever-changing role of technology.