Malta turns to innovative Blockchain IslandOn July 4th 2018 the Maltese Parliament has officially passed 3 bills into law that set up a regulatory framework for blockchain, cryptocurrency and DLT (Distributed Ledger Technology).
This new regulatory regime quickly drew the attention of the biggest international cryptocurrncy exchange Binance.
The crypto giant plans to launch decentralized financial institution with the intent of bringing together the crypto industry and conventional banking and the small island country seems like the perfect choice for such initiatives. The so called Blockchain island has the potential to become serious contender going toe to toe with leading jurisdictions in the crypto area like Gibraltar and Switzerland.

The Malta Digital Innovation Authority Act establishes the Malta Digital Innovation Authority. The Authority’s main role will be the certification of DLT platforms ensuring credibility and legal certainty for users and investors.

The Technology Arrangements and Services Act provides guidelines concerning DLT arrangement and sets up a regime for certification for DLT platforms. The main focus is to create favorable environment for cryptocurrency exchanges and companies.

The Virtual Financial Assets Act establishes the regulatory regime governing cryptocurrency exchanges, ICO providers and wallet providers.

The regulatory framework is based on 3 fundamental principles- market integrity, consumer protection and industry protection.
Unlike most jurisdictions that focus on the financial aspect of blockchain, cryptocurrency and DLT the island state is taking a different and innovative approach focused on the technological aspect. The Maltese officials are carefully dissecting and researching the technology behind the crypto industry. This approach is exactly what makes the 3 acts flexible and adaptive to the constantly changing technology. The Maltese regulatory framework combines innovation, stability and security making the Blockchain-island a potential future financial center and an attractive destination for investors.

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Hristo Yovchev

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Tags: Blockchain