The Parliament of Malta has recently passed three bills into law that establish a regulatory framework for blockchain technology.
The bills include the Malta Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act and the Virtual Financial Asset Act.
The Malta Digital Innovation Authority (MDIA) Bill establishes a new authority (MDIA) with the goal to “promote consistent principles for the development of visions, skills, and other qualities relating to technology innovation” as well as support regulations of the sector.
The Innovative Technological Arrangement and Services Act sets out the regime applicable for the registration of Technology Service Providers and the certification of Technology Arrangements. An innovative technology arrangement would include software and architectures which are used in designing and delivering distribution ledger technologies (DLT), smart contracts and related applications,
The third bill is the Virtual Financial Asset Act which has a scope to provide a proper framework within which initial coin offerings (ICOs) and crypto exchanges would operate in.
Silvio Schembri, Junior Minister for Financial Services, Digital Economy and Innovation within the Office of the Prime Minister of Malta, tweeted about the passing of the bills today, noting that the island nation is a pioneer in providing a solid legal framework for blockchain companies:
“The three Bills that will regulate distributed ledger technology (DLT) have been approved by Parliament and enacted into law. Malta , the first world jurisdiction to provide legal certainty to this space.”
A multitude of blockchain and crypto business have already located to Malta, as the country’s officials took regulatory steps to become the “blockchain island.” Recently, several cryptocurrency exchanges, including OKex, Binance, and BitBay have set up operations in Malta due to the development of a blockchain and crypto-friendly space within the country. In May, the Transport Minister of Malta announced a partnership with U.K. middleware blockchain startup Omnitude to improve the Maltese Public Transport Service using distributed ledger technology.
Moreover, the Malta Gaming Authority issued a document with guidelines on blockchain and cryptocurrency applications in the gaming industry, aiming to apply standards to games that use cryptocurrencies and blockchain technology. Last year, the government of Malta also announced it was developing a project to test the feasibility of using blockchain for the recording of academic certificates.
All the above is confirming that indeed, Malta has truly become the Blockchain island!
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