The revolutionary regulatory provisions of the cryptocurrency and blockchain of Malta will enter into force in the fourth quarter of 2018.
The Cryptocurrency regulations of Malta come into force
Following approval by the country's parliament, the Maltase government announced that the Virtual Financial Goods Act (VFA) and the Innovative Technology Services Act (ITAS) will come into force on November 1, 2018. This decision was taken after deliberations between Junior Minister Silvio Schembri and the Malta Financial Services Authority (MFSA) and Malta Digital Innovation Authority (MDIA).
EWN had previously reported the approval of the cryptocurrencies and friendly bills of the blockchain brought before the Maltese Parliament. These acts that will come into force in November are also part of the June regulatory proposals.
The law on accreditation and on innovative services will regulate the registration of "innovative technological agreements and innovative technological services" and the issue of certificates to approved technology suppliers.
The Law on virtual financial assets will regulate the issue of Initial Coin Offerings (ICOs) in the country. Among other requirements, this law requires that an issuer must first publish an easily understandable whitepaper, signed by all members of the board of directors of the issuer.
The start date of these Acts coincides perfectly with the launch date of the first edition of the Malta Blockchain Summit. The Blockchain summit in Malta will be held on 1 and 2 November.
Commenting on the launch date announcement, Summit CEO Eman Pulis said:
We are pleased that the times coincide perfectly. We have always said that we are here to support nationally aware efforts to make Malta the main jurisdiction for blockchain and DLT. We hope that the Blockchain Summit in Malta will serve as a showcase for the ecosystem and will justify the efforts made by the Maltese government on the legislative front.
The summit is awaiting 5,000 delegates and will host a Hackathon and an ICO camp.
Where countries like China and the United States have taken a more severe stance on Cryptocurrencies by embracing the technology that powers them – Blockchain, Malta has shown a progressive attitude towards the crypto and blockchain technology market.
Global cryptocurrency exchanges have consistently expressed their willingness to work with governments to ensure a regulated ecosystem. For these exchanges, government regulation gives them credibility that will guarantee investor confidence in the encrypted market. Malta, with its progressive attitude towards cryptocurrency and Distributed Ledger Technology, has established itself as the new hub for cryptographic companies and DLT providers.
Malta is also home to various exchanges, in particular BitBay and Binance. The country is also in collaboration with OKEx to launch a cryptocurrency exchange. In the sphere of the DLT, Malta has signed a memorandum of understanding with Binance to create the Blockchain Charity Foundation which will develop blockchain solutions for local and regional issues in the country.