As the issue of cryptocurrency regulation continues throughout Europe, Malta remains a safe haven for industry companies.
Three bills on cryptocurrencies
The advantages and disadvantages of cryptocurrencies are scrutinized by many countries. In the midst of regulatory turmoil, Malta is introducing three bills that will see cryptocurrency and Blockchain technologies in a new light.
The bills are:
the Virtual Financial Assets Bill, the Digital Innovation Bill of Malta and the Bill on Innovative Technology Arrangements and Services.
The first bill concerns Initial Coin Offering (ICO). A white paper – describing the requirements of the technological base and the business plan of the project – will have to be published by the company wishing to conduct a fundraising.
Malta’s Digital Innovation Bill refers to the creation of a sectoral governing body. The Malta Digital Innovation Authority will promote the cryptocurrency and blockchain industry to the government. Government decisions will have to be respected and the Malta Digital Innovation Authority will make sure of this.
The Bill on Innovative Technology Arrangements and Services deals with the regulation of “Designated Innovative Technology Arrangements”. “ This is a mechanism by which Blockchain companies would be recognized as such by law. This last project serves as a basis for the other two.
“I sincerely believe that the impact of Malta on the ecosystem will now apply to the financial sector. It is time to offer a new regulatory regime for cryptocurrencies, especially since Malta (unlike Cyprus) has not yet been a major hub for FXs ( Forex) and CFDs ( difference contracts). In addition, given that Gibraltar will soon leave the EU, its DLT (Distributed Registry Technology) regime may lose relevance for key players, “ said Tal Itzhak Ron of Tal Ron Drihem & Co.
Malta leads by example
It seems that the Maltese authorities deliberately chose to omit the term “cryptocurrency” in their documents, in order to avoid the negative connotations associated with this word. It is soon replaced by “virtual financial asset. “
“The newly introduced concept is the virtual financial asset means any form of digital media record that is used as a medium of digital exchange, unit of account, or store of value, which is however not electronic money, a financial instrument, or virtual token, “ reported Hedgeweek media.
This approach to crypto-currencies and the obvious concerns of the industry is interesting in that it is more liberal and open.
Regulation has not been established to hinder the market. Malta has demonstrated this through its policy which guarantees the prosperity of the cryptocurrency industry. Hedgeweek added:
The new legislation establishes a framework for conducting and authorizing Initial Coin Offering for virtual financial assets, preparing white papers and regulating the activities of service providers, including trading and trading platforms. They also define the rights and obligations of investors, as well as the powers of the MFSA and the Financial Services Tribunal, with respect to the proper performance of cryptocurrency-related activities.
Malta is at the forefront of a thriving adoption of the cryptocurrency industry and Blockchain. However, European countries risk being left behind for the benefit of Asian states . These are more open to the virtual currency market. It is to be hoped that other European regions will follow the Malta movement to promote the establishment of crypto-revolution in Europe.
What do you think of Malta’s position vis-à-vis the cryptocurrency industry and the Blockchain? Let us know in the comments section below.