Malta: The Blockchain Island
Malta is set to become the global capital of blockchain technologies & Virtual Currencies (VCs).
Malta is expected to have in place three acts of law that inter-operate to produce a comprehensive and unique legal framework that offers legal and regulatory coverage of blockchain technologies and crypto-currencies. Three Bills were tabled in Parliament and are expected to be enacted by the end of June 2018.
The Malta Digital Innovation Authority (“MDIA”) Bill
The new Authority will focus on innovative technologies with a focus on blockchain and Distributed Ledger Technologies (“DLT”). This Authority will certify the technologies in terms of the Technology Arrangements and Services Bill.
The Technology Arrangements and Services (“TAS”) Bill
The TAS will institute a framework for DLT platforms and smart contracts. The TAS also requires the appointment of a certified system auditor and administrator.
The Virtual Financial Asset (“VFA”) Bill
The VFA Bill introduces a Financial Instrument Test which would enable the classification of a virtual currency or an ICO to be certified in Malta. A significant expressed intent is that pure utility tokens would not qualify for any kind of regulation and/or certification.
ARQ Group has established an advisory practice to assist clients that are interested in setting up their crypto business in Malta. We are able to assist clients in regulatory advice and also by providing various specialist advice across different areas. The team at ARQ Group is currently working hand in hand with a number of large crypto exchanges, ICOs and blockchain platforms and is looking forward to contributing to the development of this new economic sector.