The crypto friendly island, Malta continues to invent itself with its parliament set to approve the three cryptocurrency and blockchain bills via a third reading tonight. This announcement was made by Prime Minister Joseph Muscat during an event in which a stablecoin called EURS was launched by the Malta-based company Stasis.
Speaking during the launch, Parliamentary Secretary for Financial Services and Digital Innovation Silvio Schembri said that there was a united front on the issue and that Malta would now become the center for those who wish to do business in the blockchain and cryptocurrency space.
The three bills will be passed in their third reading unanimously since there is political consensus on the issue with the opposition voting in favor. Although the bills will then become law, it is still unclear how companies and service providers will start to adhere to the requirements put forward by the legislation.
The Malta Digital Innovation Authority Bill is the first bill which will give wide scope to the regulation of cryptocurrencies and the blockchain space. The Bill establishes the Malta Digital Innovation Authority (“the Authority”) and will focus on internal governance arrangements. The affairs and business of the Authority will be carried out by a Board of Governors.
This Bill will also outline the duties and responsibilities of the Authority, one of the key roles being the certification of DLT platforms to ensure credibility and provide legal certainty to users wishing to make use of a DLT platform.
The Technology Arrangements and Services Bill deals with the possibility for registration of Technology Service Providers and certification of Technology Arrangements (“TA”) with the possibility of having the TA being granted separate legal personality.
The third and final Bill focuses on the regulatory regime applicable to Initial Coin Offerings (“ICOs”) and the regulation in respect of certain service providers which will be involved in activities related to ICOs.
There has been much discussion on how these crypto and blockchain bills will be implemented although at least there appears to be legal clarity going forward. Still it appears that the crypto friendly island, Malta continues to blaze the trail in the space with this new regulatory framework.
Jay is pretty interested in the crypto space. He’s written for several publications on the topic and has lots of ideas on how the world can be made a better place with blockchain technology. He’s also a fintech journalist with some years of experience and enjoys writing about new startups, ICO’s as well as any other intriguing news that catches his fancy.