Malta blockchain legislation comes into force
After receiving unanimous approval from parliament in August, the three DLT acts will now officially start regulating the industry.
The new DLT regulation bills to come into effect are: the Malta Digital Innovation Authority Bill, Innovative Technology Arrangements and Services Bill, and the Virtual Financial Asset Bill.
The Malta Digital Innovation Bill sets up a new authority – the Malta Digital Innovation Authority, to which blockchain expert and academic, Dr Joshua Ellul, was recently appointed as first chairman. 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 facilitates the regulatory framework required for the MDIA to operate. This will cover registration of service providers and systems auditors and certification of technology arrangements.
The final bill is the Virtual Financial Asset Bill, which establishes the regulatory system for the MFSA to manage the Virtual Financial Assets Market. One of the most important acts, it regulates the whole Initial Virtual Financial Assets Offering and Virtual Financial Assets ecosystem and increases transparency requirements, meaning that prospective licensees and issuers will officially start operating under the new Virtual Financial Assets Act.
The launch of the bills comes in tandem with relocation from major players in the crypto sphere, such as Binance and OKEx, and government promise to make the aptly dubbed Blockchain Island the hub for blockchain and a centre of excellence for the emerging technology.
Join Jonathan Galea, Managing Director for Blockchain Advisory, at the Regulatory Conference at 9.50 today for his speech launching the legislation.