Three Crypto-related Bills Approved by Malta’s Cabinet

The Cabinet of Malta Approves Cryptocurrency Bills

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  • Cryptocurrency Bill has been approved by Malta’s Cabinet.
  • The bills will empower the Malta Financial Services Authority (MFSA)

Malta: Report reaching revealed that Malta’s Cabinet last Tuesday 24th April, approved 3 bills which relate to digital currency and blockchain tech. One of the bills, the Virtual Financial Assets bill, in particular, offers a regulatory framework for both digital currencies and ICOs. The other two bills are the Technology Arrangements and Services Bill and the Malta Digital Innovation Authority Bill.

The 3 bills were presented to Malta’s Parliament for first reading on Tuesday. The next stage would involve a debate between both sides of the House before these bills are passed into law, the report explained. The report also stated that Silvio Schembri, the Parliamentary Secretary for Financial Services, Digital Economy and Innovation, “strongly believes” that:

“Once new laws surrounding blockchain technology and cryptocurrency are enacted in Malta, banks would be less reluctant to welcome companies working in the industry, presumably due to the legal certainty it would provide.”

Silvio also stated that:

“As a government, we think that by regulating this market, it will ensure that the three main principles of financial regulation are adhered to and will be a market that protects the investor and provides market integrity and financial soundness.”

Mamo TCV Advocates law firm explained that the Malta Digital Innovation Authority bill sees to the establishment of a new department called the Malta Digital Innovation Authority as well as its roles and responsibilities. The bill also focuses on internal governance arrangements. One of the main duties of the Authority would be “the certification of DLT [Distributed Ledger Technology] platforms to ensure credibility and provide legal certainty to users wishing to make use of a DLT platform.”

The Technology Arrangements and Services Bill sees to the registration of technology service providers and the certification of technology arrangements, like the system administrators and auditors.

According to the law firm, the Virtual Financial Assets Bill, focuses on Initial Coin Offerings “and the regulation in respect of certain service providers which will be involved in activities related to ICOs” and that “the bill will also outline the regulatory regime which will be applicable to cryptocurrency exchanges.” He noted:

“Malta has witnessed an exponential worldwide interest from exchanges seeking to relocate to Malta and issuers of ICOs wishing to launch from Malta. The proposed bill will further strengthen Malta’s position on the DLT front and solidify its reputation as a blockchain island.”

More so, the bills will empower the Malta Financial Services Authority (MFSA) “with the necessary regulatory and investigatory powers [such as] the powers to issue directives, to adopt and publish rules, to require information…[and] to suspend either an ICO or the trading of a VC on an exchange.”

Do you think passing the bill would make Malta become a crypto island? Tell us your opinion in the comments box below.

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