Malta to Become the “Blockchain Island”
After the recent announcement by Binance to shift its headquarters to Malta, it is confirmed that Malta really is walking the right way when it comes to Distributed Ledger Technology (DLT) regulation.
Malta seems to be pretty determined about achieving its goal of becoming the “Blockchain Island”. In its efforts to provide the best legal framework for DLT, the country has been efficient and proactive. Its consultation document which pertained to three proposed pieces of legislation, as well as their enactment, was open to feedback till the beginning of March. The three pieces of legislation can be summarized as follows:
MDIA (Malta Digital Innovation Authority) Bill
To begin with, the MDIA Bill would need an establishment of an authority, the MDIA. The Minister who is responsible for Digital Economy would be the one who would select the Board of Governors and the Chairman of MDIA. It would also establish a Joint Co-ordination Board (JCB), the scope of which would be ensuring effective cooperation between the other National Competent Authorities (NCA) pertaining to technology uses and MDIA. It would also establish the National Technology Ethics Committee (NTEC) which would ensure that proper standards of ethics reflect while using relevant technology.
Technology Arrangements and Service providers (TAS) Bill
This bill would be responsible for setting out the regime through which the Technology Arrangements and Service Providers would register themselves. The bill would also take care of the certification of Technology Arrangements.
MDIA would be the national competent authority which would be responsible for all of the registrations and certifications. The intention is to allow everyone to be able to request MDIA to certify the Technology Arrangement they wish to be certified, and also to register TAS providers.
Virtual Currencies (VC) Bill
The last of the three bills is the VC bill which would provide the regulatory framework and regime for ICOs and also for the provision of some services pertaining to the VCs. The regime would cover all brokers, wallet providers, exchanges, advisors, market makers and the wealth managers dealing in VCs.
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