Malta’s parliament has officially approved three laws that establish ‘legal certainty’ for businesses that deal with cryptocurrency. The country’s legislators concluded their third and last reading on July 4.
Malta- The First to Offer ‘Legal Certainty’
On July 4th, local media reported that the Parliament has passed three bills which were enacted into laws. The laws are the following: the Malta Digital Innovation Authority Act, the Innovative Technological Arrangement, and Services Act, and the Virtual Financial Asset Act.
Malta’s Junior Minister for Financial Services Silvio Schembri stated that the country is the first one that offers legal certainty to the cryptocurrency space.
“The 3 Bills that will regulate DLT have been approved by Parliament and enacted into law. Malta, the first world jurisdiction to provide legal certainty to this space. #blockchainisland @JosephMuscat_JM”
Schembri also noted that the Maltese Parliament’s regulations will assist investors as companies will now have the possibility of operating in a totally regulated setting. He also mentioned that this will most likely draw further investments in the country.
“I am optimistic that further companies will choose Malta to operate from with a system that offers stability and that will eventually result in further economic growth.”
What Will the Bills Actually Do?
The three bills that have been passed in the Parliament will fulfill the following functions:
The Virtual Financial Assets Act (VFA)
The bill regulates Initial Coin Offerings (ICOs). It imputes the required steps that each project has to fulfill so that they are compliant. One of the stipulated requirements is that each issuer has to make public his financial past.
The Malta Digital Innovation Authority Act (MDIA)
MDIA specifies the formation of an industry-specific entity, which will oversee the development along with the implementation of certain guiding principles assigned in the Act. The newly established body will also be able to pass regulations. The entity will be named the “Malta Digital Innovation Authority.”
The Innovative Technology Arrangements and Services Act (ITASA)
It defines blockchain-based enterprises and gives them recognisability from a legal standpoint. The law was selected to act as the basis on which the previous two laws will operate.
Securing Its Position
Malta has succeeded in establishing itself as a nation which supports the general adoption of blockchain-based technology. Lately, a number of cryptocurrency exchanges, counting Binance, OKEx, and BitBay, have set up shop on the island due to its broad-minded policies in the field.
Part of the country’s very positive outlook towards the industry is denoted by its Prime Minister. Joseph Muscat has been quite open, asserting that cryptocurrencies are the “inevitable future of money.”
In a tweet following the announcement of the latest legislative developments, Muscat has said that the country intends on becoming a “global hub for market leaders in this new sector.”
“#Malta 🇲🇹 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 -JM @SilvioSchembri”- tweeted Muscat.