In the recent years, Malta has promoted itself as a hub for trade and free movement. In this respect, it has never shied away from being among the first to regulate various prominent industries. The Maltese Government is moving forward with the proposed framework for the regulation of DLT (Distributed Ledger Technology), and determined to achieve success.
Due to Malta’s stable political climate paired with an accredited growth higher than most EU countries, these factors ensure a safe hub from which to operate one’s business.
The framework covers integral aspects underpinning this ever-adapting and innovative industry. This week, the second reading of the three bills took place in Parliament, such are entitled as follows:
- The Malta Digital Innovation bill; (eventually MDA) embodies the establishment of the Malta Digital Innovation Authority which shall focus on the supervision and certification of DLT platforms and smart contracts;
- The Technology Arrangements and Service Providers (TAS) bill, shall focus on the setting-up of a registration and certification mechanism for technology arrangements which voluntarily decide to register themselves; and
- the Virtual Financial Assets (VFA) bill, shall regulate the offering of virtual financial assets, including the implementation of a bespoke financial instruments test.
The proposed framework, under the supervisions of the Malta Financial Services Authority, is intended to provide further security to investors, platform developers, and issuers alike vis-à-vis the token offering at hand. The three-pronged approach places Malta in a very favourable position when compared to its peers, mostly due the creation of the MDIA, which is the first regulatory authority of its kind in the world.
The VFA (Virtual Financials Assets) Act will eliminate the uncertainty supporting the current cryptocurrencies market, rendering Malta a secure and stable place for business.