Prime Minister of Malta and leader of its Labour Party Joseph Muscat noted on Twitter:
“Malta [is] officially the first country worldwide to have holistic legislative framework regulating #blockchain & #DLT technologies. We will be the #global hub for market leaders in this new sector. Now for the implementation of #BlockchainIsland“.
Just recently, The national Parliament has passed three bills into law that establish a regulatory framework for blockchain and crypto.
The Virtual Financial Assets Act (VFA) is able to regulate initial coin offerings (ICOs) and states that projects attracting funding through ICO are obliged to publish White Papers.
According to the Malta Digital Innovation Authority Act (MDIA), an industry-specific governing body will be set up which will be responsible to support the development and implementation of the guiding principles. The body is expected to promote consistent principles for the development of visions, skills, and other qualities relating to technology innovation as well. Besides, it will regulate functions regarding innovative technology, arrangements and related services.
The Innovative Technology Arrangements and Services Act 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.
Malta is proving itself to be at the forefront in creating a cryptocurrency-friendly jurisdiction and has already attracted two of the biggest crypto exchanges in the world to set up offices on the island.