Malta is Now Officially the ‘Blockchain Island’ !
The Maltese Parliament passed a series of pro-blockchain bills into law, heralding the launch of a new concrete legal framework for blockchain industry within the island nation. The new bills-turned-law specify the regulation of initial coin offerings (ICOs) and cryptocurrencies in Malta and clearly outlines the launching process of crypto-related businesses, establishing the country as a highly attractive location for blockchain enterprise.
The bills are known as the Malta Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act, and the virtual Financial Asset Act.
The Junior Minister for Financial Services, Digital Economy and Innovation within the Office of the Prime Minister of Malta, Silvio Schembri said on twitter that the bills will regulate blockchain technology.
Silvio Schembri commented on the matter:
“The three Bills that will regulate distributed ledger technology (DLT) have been approved by Parliament and enacted into law. Malta, the first world jurisdiction to provide legal certainty to this space.”
- The Virtual Financial Assets Act, intends to regulate ICOs. Under new Maltese law, companies planning to generate startup capital via ICOs will be required to publish detailed white papers that meet a range of specific requirements. Notably, individuals seeking to launch ICOs in Malta will be expected to make public their financial history.
- The Technology Arrangements and Services Bill outlines the registration of “technology service providers,” and appears to be aimed primarily at the registry and operation of innovative technology arrangements and services. The entities governed by this act include software and architectures which are used in designing and delivering DLT, as well as smart contracts and related applications and, interestingly, decentralized autonomous organizations.
- The Malta Digital Innovation Authority Act will see regulatory procedures for both cryptocurrencies and the blockchain industry formalized. This act also includes the creation of the Malta Digital Innovation Authority, which will function as an industry regulatory body driven by a CEO-led Board of Governors.
In this way, companies and investors will have all the legal tools they need to establish their enterprises in the country. Different enterprises and businesses, including Binance, the most important virtual currency exchange in the market, have decided to settle their operations in the island.
Some of the benefits are its connection with the European Union, the possibility to work with local financial institutions like banks, have a stable financial environment and clear regulations on blockchain technology.
Other important companies located in the country are OKex and BitBay. Both of the companies decided to find a better country where to locate their operations, and the island seems to be a good place.
In a world where most governments and countries are sceptics of cryptocurrency, Malta is the first fish in the pond to view the industry differently. These bills are expected to attract more platforms and will help both amplify the cryptocurrency and blockchain industry as well as Malta’s economy.
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