Malta’s parliament has passed three bills which have been broadly viewed as a positive development for the growing blockchain ecosystem on the island. The bills provide for the regulation of digital ledger technologies and the establishment of a body to oversee the industry.
Malta is widely viewed as one of the most progressive jurisdictions when it comes to regulating and encouraging blockchain-based initiatives as well as financial innovation in general. The move has led several prominent crypto businesses, including leading exchanges such as Binance, BitBay and OKEx to move their headquarters to the Mediterranean archipelago.
Establishing Malta As a Blockchain Hub
The first of the three bills, The Virtual Financial Assets Act, deals specifically with ICOs. It states that any project being funded via an ICO must publish a white paper, and lays out a framework for good governance of blockchain projects.
The second bill, The Innovative Technology Arrangements and Services Act will allow Technology Service Providers to be certified and have a separate legal personality. The bill is primarily concerned with crypto exchanges and, according to some observers, has been conceived with the primary purpose of establishing Malta as the destination of choice for crypto exchanges.
Finally, The Malta Digital Innovation Authority Act, has established a body specifically to oversee regulation and the advancement of the sector. The body will also vet and certify DLT platforms to ensure their credibility. It was also announced that Stephen McCarthy has been appointed as the CEO of the Malta Digital Innovation Authority.
While uncertainty continues to hang over the crypto industry in several major countries, other jurisdictions clearly see the industry as an opportunity to attract investment and talent.