Introduction.
With the Virtual Currency Act in the pipeline and set to offer the assurances and guarantees that the public was demanding, Parliamentary Secretary Silvio Schembri has announced the new strategy which will specifically deal with cryptocurrencies.
The MDIA Bill.
The Parliamentary Secretary also announced that after the three-week consultation period terminated, the government would be presenting three separate bills. The first, the MDIA bill, will establish a Malta Digital Innovation Authority, acting as the main regulator of this industry and “will promote government policy that favours the development of Malta as a hub for new and innovative technologies”.
Blockchain Technology & Cryptocurrencies.
Strictly speaking, this area of expertise will focus mainly on the use of the Blockchain technology. As already discussed in previous articles, a DLT (Distributed Ledger Technology) is a sort of decentralised digital database which can have various applications from currency transactions (what virtual currency Bitcoin and the platform Blockchain are most famous for) to supply chain management.
Introducing the TAS Bill.
A second bill being tabled is the TAS bill, a legislation which will outline the framework needed for the registration of Technology service providers. This framework will allow for the registration of auditors and administrators of DLT platforms and their certification.
The Virtual Currency Act: Regulating Cryptocurrencies.
Finally, the much-anticipated Virtual Currency bill, eventually resulting in the Virtual Currency Act will be setting out guidelines and a proper strategy for initial coin offerings (ICOs) and the legal framework necessary for the provision of services related to cryptocurrencies.
As stated by the Parliamentary Secretary himself, “the purpose of these laws will be to provide legal certainty to a space that is currently unregulated. It will provide an environment conducive to this technology, and it will make Malta the natural destination for businesses working in this field.”
Conclusion.
Dr. Schembri also confirmed that just like the setting-up of the Malta Gaming Authority, the Government was looking into opening a separate Authority to specifically deal with these new initiatives, in particular: cryptocurrencies. “Why are we doing all of this? To provide the necessary legal certainty to allow this industry to flourish,” he was quoted as saying.
