Being the first country to have its regulatory framework for Blockchain technology, Malta can be considered at the forefront for embracing this revolutionary innovation.
Blockchain Regulations in Malta
On the 4th of July, the Maltese Parliament passed three bills into law, giving any interested investor a clear picture of the legal framework required to set up a legitimate cryptocurrency business in Malta. These are the Malta Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act, and the Virtual Financial Asset Act.
The Virtual Financial Assets Act (VFA)
This VFA deals with the regulation of initial coin offerings (ICO) and states that projects attracting funding through ICO are obliged to publish White Papers. These are a prerequisite imposed by the Maltese authorities and should contain a description of every aspect involved in such project. In addition the bill requires that the issuer’s financial history must be made public.
The Malta Digital Innovation Authority Act (MDIA)
The MDIA infers that an industry-specific governing body will be set up. Such an authority will be responsible to support the development and implementation of the guiding principles described in this Act and to promote consistent principles for the development of visions, skills, and other qualities relating to technology innovation, including distributed or decentralised technology. Moreover it will exercise regulatory functions regarding innovative technology, arrangements and related services.
The Innovative Technology Arrangements and Services Act
This bill concerns the regulation of designated innovative technology arrangements. It will be the mechanism by which blockchain-based enterprises are recognised as such under the law, and as such will be the basis for the previous two bills to operate.
Cryptocurrency in Malta
The cryptocurrency-friendly jurisdiction that Malta has created has already attracted major cryptocurrency exchanges in the world who are to set up offices on the island. The stable system and the forward approach that the island has to offer is creating the ideal setting to attract further investment.
As a leading Corporate Services Provider in Malta, CSB Group is able to provide further information and assistance on what Malta has to offer in relation to blockchain and cryptocurrencies. Backed with years of experience in company incorporation, tax advisory and regulatory and compliance, our team can give complete solutions to anyone wishing to set up a blockchain operation in Malta.
For any assistance required please do not hesitate to contact us on [email protected] or +356 2557 2557.