New Blockchain Legislation
In many countries, blockchain is a familiar concept and does not cause misunderstanding, which is why financial opportunities in Malta have reached such a level.
Some countries have focused only on bitcoin or similar cryptocurrencies at a standard level. But there are innovators who introduce cryptocurrency at the state level, letting them into banking. From a legal point of view, this issue has not yet been thought through to the end.
The island of Malta is an ideal place that attracts the attention of investors. And all because this country was one of the first to legalize the cryptocurrency market, debugged regulations regarding blockchain.
In 2018, the parliament of the small island approved the legal framework governing market relations for DLT, a blockchain wallet and cryptocurrencies.
They were the first to register and approve a set of official rules for the virtual currency world. Changes have been made at the legislative level.
New blockchain regulations
According to the first law, it is necessary to create an MDIA body, the purpose of which is the regulation of innovative technologies.
The organization must form productive relationships with national authorities in this area.
The tasks of MDIA include:
- control and regulation of innovative technologies and services;
- assistance in the development of innovative technologies.
The law is called the Malta Digital Innovation Authority Act (MDIA Act). According to its provisions, the national competent authorities must meet the new organization and act together.
Depending on the situation, each of the authorities has the right to take control and responsibility. The second participant provides auxiliary functions.
Another equally important law is the Innovative Technology Arrangement and Services Act. This is a regulatory act regulating innovative technologies and services.
In the appendix to the ITAS bill, criteria are presented by which innovative ITA technologies and services regarding modern ITS technologies are determined.
The law also stipulates that innovative services and technologies, according to the characteristics of ITS and ITA, are defined as such after approval by the MDIA, which must determine the acceptability in writing.
It is worth noting that MDIA is not the last resort. Applicants may appeal to the Tribunal, which may change the decision of the MDIA. This is spelled out in the bill.
In addition to the two main regulatory provisions, a new entity was legislatively designated – a provider of innovative technologies and services. In order to become an official providing innovative technological services, you must register with MDIA.
Moreover, one and the same person can register various types of services. Each such registration does not cancel the previous one. This form provides for the identification of information and the corresponding classes of services.
All data is entered into the registration certificate, which contains the complete information provided for registration of the entity providing innovative technological services.
Blockchain certificates
Such an ITS and ITA certificate legitimizes the entire system, making it transparent. All representatives of ITS and ITA have the right to receive such a certificate that will give a sense of confidence and certainty in this area.
More certification is available for non-residents of Malta. In order for a non-resident to receive a certificate for an innovative technology or service, he must appoint a representative – a resident agent.
Such a representative is authorized to establish and maintain a communication channel between the MDIA and the provider of innovative technological services. If necessary, you can connect the government department and authorities.
All criteria regarding ITS and ITA and certification are clearly laid down in law.
In order to transparently describe all stages of the registration and certification procedure, potential investors can make a full picture and assess the level of reliability, which will include financial opportunities in Malta
It is worth noting that thanks to such legislative provisions, a legal framework for cryptocurrency is being formed.
There is another important legal act – The Virtual Financial Assets Act, 2018 (The VFA Act).
Its provisions regulate the sphere of virtual currency. It provides control over the scope of the initial virtual currency assets of Initial Virtual Financial Asset Offerings, other virtual currency assets of Virtual Financial Assets and resolves all issues related to them.
The Act on Virtual Financial Assets spells out the entire current regulatory framework regarding virtual currency.
It is also worth noting that the law The Virtual Financial Assets Act spelled out 8 names of services related to virtual financial assets. Each of the services specified in the law must be supported by a license.
And comply with the requirements regarding the amount of personal funds of the company.
The law mentions that no organization issuing securities can offer them either in Malta or releasing them from Malta without a whitepaper. This is a document that describes Virtual Financial Assets services. The legal act prescribes the regulatory conditions for registration.
It is also worth noting that only the VFA agent is eligible to apply for a license. The competent authorities of the island of Malta have created a complete register in which all license holders and agents are entered. The registry is in the public domain.
Our company is based on experience with this sphere and Eternity Law International specialists will be happy to рrovide you with assistance in resolving this issue.