Maltese Parliament to pass three Cryptocurrency bills.
July 9, 2018 8:31 am,
Malta’s Prime Minister Joseph Muscat mentioned to the journalists that the parliament will endorse three Cryptocurrency bills that were intended to bring changes in the blockchain technology. Malta is trying to create a crypto-friendly environment which will be able to attract a number of foreign companies dealing in virtual currency or Cryptocurrency from everywhere throughout the world.
The three bills that are to be approved cover the regulation of ICOs, guidelines for Cryptocurrency exchange operators that want to start their business in Malta and the broader regulation of the Cryptocurrency and blockchain sphere. These bills are as follows:-
- The Malta Digital Innovation Authority (MDIA) – It 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 vision, skill, 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.
- ITAS Bill (Innovative Technology Arrangements and Services Act) is designed to regulate the innovative technology arrangements. It will be the mechanism by which Blockchain based enterprise is recognized as such under the law.
- The Virtual Financial Assets Act (VFA) – This VFA deals with the regulation of ICO and states that projects attracting funding through ICO are obliged to publish white papers. These are a prerequisite imposed by 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.
Malta has gained its popularity of being an attractive location for companies working in blockchain and Cryptocurrency technology partially owing to removing regulatory uncertainty. Indifference to many other countries, the Maltese government has a very clear understanding that blockchain includes not only cryptocurrencies.
For now, Malta has become the foremost country in the world to legally be acquainted with smart contracts and DAOs (Decentralized Autonomous Organizations) that are defined as a new type of legal entity called “Technology Arrangements”