On the 22 May 2018, the Government of Malta published the three anticipated bills which will give the various stakeholders a clear picture of the legal framework which will regulate distributed ledger technology platforms (DLT) and their underlying assets.
The government’s vision is to attract more blockchain businesses’ to Malta, “The Blockchain Island.” Malta is the first in providing legislation in the emerging new sector while providing legal certainty for organisations wanting to be regulated. Malta’s pro-business approach has clearly attracted a number of top players already within the industry which have consequently relocated in Malta.
The Malta Digital Innovation Act will pave the way for the set-up of the Malta Digital Innovation Authority (MDIA) which will provide legal certainty to all DLTs. The MDIA will help to provide and promote credibility and assurance.
Innovative Technology Arrangements and Services Act
The Innovative Technology Arrangements and Services Act sets out a framework for Technology Service Providers to register with a central authority to be able to issue certifications for Technology Arrangements with specified purposes such as qualities, features, attributes, behaviours or aspects. Applicants who are not ordinarily resident in Malta, must appoint a registered agent who is habitually resident in Malta.
Virtual Financial Assets Act (VFA)
The VFA shall regulate all cryptocurrencies, cryptocurrency exchanges as well as ICOs (Initial Coin Offerings). Being one of the first to regulate such matters, operators will be looking to Malta as their point of reference for the launch of their DLT platforms and related business.
For more information, please contact Rishi Bonnello at r.bonello@rosemont.com.mt
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