Malta publishes Bills on the regulation of Blockchain and Cryptocurrency services

23 May 2018

The much-anticipated three bills have been published and investors can now obtain a clearer picture of the legal framework which will be put in place in the near future that will guide distributed ledger technology platforms and their underlying assets.

Malta is the first jurisdiction to provide for legislation in this new emerging sector so as to provide legal certainty for organisations that want to carry out a token offering as well as for those entities who want to set up a cryptocurrency exchange and operate from within a secure environment.

 

The Virtual Financial Assets Act (VFA)

One of the most awaited frameworks, this proposed legislative act lays down the groundwork for regulation governing the issue of tokens as well as setting the stage for the setting up of cryptocurrency exchanges and other services relating to the trading of cryptocurrencies. This will enable investors to look at what Malta has to offer in a more holistic and concise manner, to be better equipped at making an informed decision as to where they want to locate their operations. We believe that being the first of its kind, this legislation will offer endless opportunities for entrepreneurs and innovators to look towards Malta as their point of reference when it comes to launching DLT platforms and other related activity businesses.

http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=29079&l=1

 

The Technology Arrangements and Services Act (TAS)

One of the more interesting and innovative legislation being proposed, it sets out a framework for Technology Service Providers to register with a central authority to be able to issue certifications for Technology Arrangements. This aims at adding more credibility to existing and upcoming projects by having an external review of such technology being proposed. It is to be highlighted that in this aspect, the regulator is not intending on making such a process mandatory for platform providers.

http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=29078&l=1

 

The Malta Digital Innovation Authority Act (MDIA)

This Act will be setting up an authority designated with the responsibility of promoting credibility and assurance towards this ever-growing industry. Whilst the envisaged role for this authority will be minimal for the initial stages, it can position itself in a place as to enhance innovation from within our jurisdiction by being the point of reference for several investors looking towards Malta as the ideal jurisdiction for blockchain-related activity.

http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=29080&l=1

 

If you require any information in relation to what has been published and would like to learn more on what Malta has got to offer, please do not hesitate to contact us at fintech@bdo.com.mt.

Our team of professionals will be able to assist with answering any queries which you might have as well as providing you with the necessary guidance to choose Malta as your hub for innovation.