Malta looks to continue setting the trend in the cryptocurrency space with new legislative developments. The Maltese government cabinet has recently approved three bills to regulate cryptocurrency in Malta, one of which is the Virtual Financial Assets Bill. The bill provides a regulatory framework for cryptocurrencies and initial coin offerings.
The other two bills approved by cabinet are the Malta Digital Innovation Authority Bill and the Technology Arrangements and Services Bill. The three bills were then presented for their first reading in the House of Representatives. Parliamentary Secretary for Financial Services, Silvio Schembri, was quoted in a local newspaper: “Once new laws surrounding blockchain technology and cryptocurrency are enacted in Malta, banks would be less reluctant to welcome companies working in the industry, presumably due to the legal certainty it would provide.”
These developments continue to provide fuel to recent announcements made by top crypto players. Binance announced that they were moving to Malta with some fanfare just a few weeks ago. The flamboyant cryptocurrency exchange was followed by OKEx who also announced that they would be moving some operations to the island in the near future. These announcements have created a considerable buzz in the crypto space with several articles appearing in the international press describing Malta as ‘the blockchain island.’
The Malta Digital Innovation Authority Bill creates a new department called the Malta Digital Innovation Authority. One of the law firms involved in its drawing up, Mamo TCV, explained that one of its roles was the certification of distributed ledger technology. Such involvement should ensure credibility and legal certainty to those who wish to make use of such platforms.
The Technology Arrangements and Services Bill is concerned with the registration of technology service providers (such as cryptocurrency exchanges). It also deals with technology arrangements regarding system administration and auditors. The Virtual Financial Assets Bills focuses mostly on ICOs and will also outline the regulatory regime dealing with cryptocurrency exchanges.
These exciting new developments will certainly continue to put Malta firmly on the crypto map.
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.