8 months ago

Malta has been actively developing its policy regarding crypto businesses in 2018, considering as a goal an establishment of blockchain friendly system. This system is likely to deserve attention of startupers, investors and already existing businesses that are interested in partnership with crypto companies.

According to the latest speech of  Joseph Muskat, Malta Prime Minister, taking place on the 73rd Session of the United Nations General Assembly, he “passionately believes technology revolutionizes and improves systems.” That’s the reason of the Malta’s positioning as the near future Blockchain Island with no legal vacuum for the rapidly developing technology.

Joseph Muskat, Malta Prime Minister about the future of blockchain

By being the first jurisdiction worldwide to regulate this new technology that previously existed in a legal vacuum. Blockchain makes cryptocurrencies inevitable future of money. More transparent it helps filter good business from bad business

The following regulatory provisions will enter into force in Malta within a month, on 1st of November. They are likely to cover all the legal spheres except the post-ICO development of the projects.

The Virtual Financial Assets Act = an ICO activity regulatory document

In brief, this document concentrates on the regulatory field for Initial Coin Offerings, taking also into account service providers rights and duties that are applied to the ICO process. The projects, which look for fundraising by ICOs, are obliged to publish White Papers with concrete description of all the aspects written in it. The VFA bill also implies the fact that the issuer’s financial history should be a public one.

The Innovative Technology Arrangements and Services Act = an instruction for blockchain-business founders to make their company legal in Malta

As it can be assumed from the title, this bill is the way of Technology Service Providers registration and Technology Arrangements certification with the rule of law. Technology Arrangements might be also given a separate legal personality. The described mechanism will assist in recording of the blockchain-based companies as the legal ones and it will be quite helpful for the exchanges and other crypto related businesses launching.

The Malta Digital Innovation Authority Act = a document controlling implementation of governmental initiatives

MDIA gives emphasis to internal arrangements taking place in government. The implementation and compliance with the principles of the new DLT/blockchain Maltese rules of the game will be controlled and its promotion is also a part of equation.

These three bills were unanimously supported in the Maltese Parliament on 27th of June.

The tweet from Silvio Schembri, Junior Minister for Financial Services, Digital Economy and Innovation in the Office of the Prime Minister in Malta, announcing new development, was met with big enthusiasm, congratulations and optimistic future expectations in comments.