Parliament of Malta to Pass a New Crypto-Friendly Bill

Parliament of Malta to Pass a New Crypto-Friendly Bill

According to CCN, The Parliament of Malta will be passing the three cryptocurrency and blockchain bills through their second reading later today.

In a speech at the Malta Institute of Management Cryptocurrency Considerations for Management Conference, the Parliamentary Secretary for Digital Innovation Silvio Schembri announced about this important development.

Such bills are fast making Malta into a crypto space of choice for investors and company owners who are interested in finding a favorable jurisdiction to set up their cryptocurrency or blockchain business.

World leading exchanges such as Binance, DQR and OKEx have already announced they’re setting up in Malta.

The three acts in the bill are The Virtual Financial Assets Act (VFA), The Malta Digital Innovation Authority Act (MDIA), The Innovative Technology Arrangements and Services Act.

Here’s a brief description of the acts:

The Virtual Financial Assets Act (VFA)

This VFA deals with the regulation of initial coin offerings (ICO) and states that projects attracting funding through ICO are obliged to publish White Papers. These are a prerequisite imposed by the Maltese authorities and should contain a description of every aspect involved in such project. Additionally, the bill requires that the issuer’s financial history must be made public.

The Malta Digital Innovation Authority Act (MDIA)

The MDIA infers that an industry-specific governing body will be set up. Such an authority will be responsible to support the development and implementation of the guiding principles described in this Act and to promote consistent principles for the development of visions, skills, and other qualities relating to technology innovation, including distributed or decentralized technology. Moreover, it will exercise regulatory functions regarding innovative technology, arrangements, and related services.

The Innovative Technology Arrangements and Services Act

This bill concerns the regulation of designated innovative technology arrangements. It will be the mechanism by which blockchain-based enterprises are recognized as such under the law, and as such will be the basis for the previous two bills to operate.

With the introduction of these bills, the investors will have a clear picture of the legal framework required to set up a legitimate cryptocurrency business in Malta. Malta is a proving to be way ahead of others in creating a cryptocurrency-friendly jurisdiction.

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