Malta passed the three bills that will regulate the entire blockchain and cryptocurrency space on the so-called Blockchain Island. The Prime Minister of the country, Joseph Muscat, confirmed in a press conference that the parliament unanimously reaffirmed its decision to approve the three projects, which reach legal status with the names of Digital Innovation Law, Law of Innovative Technology Arrangements, and Services and Law of Virtual Financial Assets.
Malta, officially the first country in the world to have a holistic legislative framework regulating blockchain and DLT technology. We will be the global hub for market leaders in this new sector. Now let’s move on to the implementation of Blockchain Island.
Joseph Muscat, PM of Malta
The Parliamentary Secretary for Digital Innovation and Finance of Malta, Silvio Schembri, then issued a tweet to disseminate the announcement, stating that with the legal status of these three projects, Malta becomes the first jurisdiction to provide full legal certainty in the blockchain and cryptocurrency ecosystems.
This is the final stage of legislation that will put Malta on the international map of blockchain and kryptonite regulation. There is political consensus on this roadmap and we anticipate that this area will become the pillar of our growth for the next 4-5 years.
Malta adopted three projects that will comprehensively regulate blockchain and cryptocurrency
Malta’s Digital Innovation Act will allow for the establishment of the Malta Digital Innovation Authority (MDIA), which will operate autonomously and independently and will be responsible for all matters relating to technological innovation and its forms of use. In its initial phase, it will only regulate blockchain technology and smart contracts, but will also promote government policies, educate on technological fixes and encourage the advancement, design, and use of innovative technology.
On the other hand, the Law of Innovative Technology Arrangements and Services, which will be in charge of establishing the regulations required by the MDIA to operate with cryptocurrency, it will include registration of service providers, system administrators and auditors, as well as certification of technological arrangements.
Finally, the Virtual Financial Assets Act will establish the regulatory regime of the blockchain and cryptocurrencies market in order to ensure that the fundamental principles of financial regulation are complied with, that the investor is protected and that financial integrity is provided.