It was a matter of time until Malta unveiled its plans for blockchain and cryptocurrency. For the time being, there is still only a paper open to feedback from the public. It is an important step toward actively regulating both nascent industries in the country. This new effective legal framework can have a positive impact on this new industry. An interesting development that may set the tone for the rest of Europe to follow.
Regulating blockchain and cryptocurrencies is not easy by any means.There are many different factors to take into account. Unlike some other countries, Malta doesn’t want to hinder growth in either sector. Instead, they want to ensure a proper and effective legal framework is established. Regulations are often seen as a necessary evil, yet it can also help legitimize both cryptocurrency and blockchain. For now, it remains to be seen when this will effectively happen in Malta, though.
Malta Wants Regulatory Feedback
The local government has published their discussion paper regarding these regulations. The goal is to have the next legal framework in place by some point in 2018, but no specifics are provided. This paper talks about blockchain, cryptocurrencies, digital assets, and initial coin offerings. That latter part is no real surprise, as it is an industry which clearly needs oversight. Anyone is invited to make their recommendations to ensure the regulation is created in a proper manner.
Stasis.net CEO and founder Gregory Klumov comments:
“Malta has a track record of creating stable and attractive regulatory environment for complex industries like financial intermediaries and gaming. More than 10 years ago Malta became the first EU country to enact comprehensive legislation on remote gaming, and industry leaders consider Malta as one of the foremost tried and tested jurisdictions in the world. We believe decentralized finance is exactly the industry that perfectly fits into Maltese strategy of digital innovation and happy to contribute to respected authorities our recommendations to regulate digital assets, particularly asset-backed tokens.”
It is good to see an open-minded approach to regulating both industries. There are a lot of opportunities, but equally as many risks. Taking everything into account will not be easy. Opening this document to feedback is the only valid course of action in this regard. It will be interesting to see how industry experts weigh in on these matters. Malta ants to position itself as an international hub for blockchain and cryptocurrency, that much is evident.
Header image courtesy of Shutterstock