Final reading on DLT passes through Parliament
The third and final reading on Distributed Ledger Technology was passed by Parliament yesterday. The DLT regulation bills presented by the government are: the Malta Digital Innovation Authority Bill, Innovative Technology Arrangements and Services Bill and Virtual Financial Asset Bill.
The Malta Digital Innovation Bill will set up a new authority – to be known as the Malta Digital Innovation Authority. The autonomous authority, which will act independently, will concern itself with the advancement of innovative technology arrangements and their use cases as well as promoting government policies. Initially, the MDIA will only focus on regulating DLT and related Smart Contracts.
The second bill, The Innovative Technology Arrangements and Services Bill will facilitate the regulatory framework required for the MDIA to operate. This will cover registration of service providers and systems auditors and certification of technology arrangements.
“At the initial stage, the regime will be on a voluntary basis. The way this is being proposed, it encourages a company to be certified by the Authority and we feel that those companies which are serious will opt to certify themselves voluntary,” said Parliamentary Secretary Silvio Schembri.
The final bill which passed through parliament yesterday is the Virtual Financial Asset Bill and will establish the regulatory system for the MFSA to manage the Virtual Financial Assets Market.
The proposed framework aims to provide increased security to investors and platform developers, eliminating uncertainties in the current cryptocurrencies market, making Malta a more secure and stable place to do business.