Malta has officially earned itself the title ?Blockchain Island” after its parliament passed three bills on blockchain frameworks, cryptocurrencies, and distributed ledger technologies (DLT).
The Parliament of Malta decided to mark the 4th of July by passing the three bills into law, namely the Virtual Financial Asset Act (VFA Act), the Innovative Technological Arrangement and Services Act (ITAS Act), and the Malta Digital Innovation Authority Act (MDIA). This means Malta is the first country in the world to officially provide legal guidelines and regulations on how operations regarding cryptocurrencies, DLT, and blockchain technology should be handled.
The MDIA act will focus on matters regarding internal governance by outlining the responsibilities and duties of the authority that will certify DLT platform. This law will ensure legal certainty and credibility to users. The ITAS Act will focus on arrangements and certifications that involve DLT platforms. This includes setting up companies operating in the cryptocurrency domain including crypto exchanges. The VFA Act is expected to establish regulations for governing cryptocurrency exchanges, wallet providers, and ICOs.
?I think that blockchain technology, DLT, and cryptocurrency is where innovation is happening right now,? stated Malta?s Prime Minister Joseph Muscat.
Malta to become a crypto and blockchain hub
The signing of the bills into law should help make Malta more desirable to blockchain startups and it is also part of the country?s plan to be a leader in economic innovation through blockchain technology. The country also expects the move to boost its economy through a new economic niche.
Silvio Schembri, the Junior Minister for Financial Services, Digital Economy and Innovation in Malta stated that the new laws represent an important milestone not only for the country but also for the companies that will benefit from them. Investors and startups in the blockchain space will have the necessary tools that they need in order to run their operations in a fully regulated environment.
Schembri also stated that the new cryptocurrency and blockchain laws reflect the principles of the European Union. He explained that they are based on principles such as industry protection, customer protection, and market integrity.