The Maltese Parliament voted unanimously in favor of three bills related to cryptocurrency and Blockchain. Once again, the country has established itself as a destination of choice for the installation of digital currency exchange services, with new regulations favorable to the development of the industry and the blockchain technology. Thus,it opens its doors to new companies in the sector.
Silvio Schembri, the parliamentary secretary at the initiative of these bills, posted his enthusiasm on Twitter, shortly after the vote. He thanked everyone involved in the project, and named Stephen McCarthy, the new CEO of the country’s Digital Innovation Authority.
A press conference was held last week during which Schembri said:
“We believe that the emergence of cryptocurrencies is here to stay, and as a government, we anticipate the changes that digital currencies can cause in the daily lives of our fellow citizens. ”
The main objective of the Maltese government is to create a favorable environment for the development of digital currencies and Blockchain. The priorities of the three bills remain investor protection, regulation of industry-related companies and financial transactions on the island.
Three new laws in Malta
Bills dubbed the Malta Digital Innovation Authority Bill, the Virtual Financial Assets Bill, and The Innovative Technology Arrangements and Services Bill will make Malta a hotbed for cryptocurrency and blockchain-related activities, attracting many companies in the industry.
The Malta Digital Innovation Authority Bill defines the obligations of the authority bodies to promote and develop the innovative technology sector in the country. Ethical standards will be clearly established with the aim of protecting consumers and investors, and harmonizing Maltese operations with European standards.
The Virtual Financial Assets Bill deals with the regulation of new companies at the launch of Initial Coin Offering (ICO), also known as Initial Virtual Financial Asset [VFA] Offerings. Companies will be required to produce a white paper detailing their activities in accordance with Maltese laws. Advertising campaigns relating to VFAs will be subject to strict regulations. VFA issuers will need to appoint an independent VFA agent to oversee the project and act as a liaison between the company and the regulator.
Finally, the Technology Arrangements and Services Bill will be operated by the Malta Digital Innovation Authority. This regulates the arrangements and services of innovative technologies.
These three new laws are part of a broader trend that began in 2017. The Blockchain Taskforce was set up by the Maltese government in September to develop a national strategy using Blockchain technology.
The Japanese giant Binance announced its move to Malta in March 2018. OKEx, one of the world’s largest crypto-purses, has announced its intention to move to Maltese lands in April. BitBay, another cryptocurrency trading platform, did the same in May. Other companies related to virtual currencies plan to settle on the island.