Malta is positioning itself as one of the most blockchain-friendly nations in the world. The government is paying special attention to this technology, as well as various cryptocurrencies. Additionally, the country’s three blockchain Acts will go into effect as of November 1, 2018.
Malta has been at the forefront of blockchain and cryptocurrency innovation this year. The region’s positive regulatory mindset makes it a very appealing region for companies active in these industries. This trend was kickstarted when popular exchange Binance decided to set up an office on the island. Other companies quickly followed suit in mid-2018.
Positive Changes are Coming to Malta
To cap off these efforts, Maltese officials will introduce three legislative proposals pertaining to distributed ledgers. Known as the three blockchain Acts, these changes will bring more legitimacy to the industry. All proposals are unanimously approved by the Parliament and will go into effect as of November 1st. A major milestone for the Maltese DLT industry as a whole.
One major change will be introduced as part of these regulatory developments. Licensees and issuers will act under the Virtual Financial Assets Act.. Until early November, service providers are not subject to regulations, which creates a far more competitive environment. From November 2018 until November 2019, companies have one year to comply with the laws and regulations as issued by the MFSA.
It is evident the government of Malta wants to embrace the potential of blockchain and cryptocurrency. To successfully do so, these new regulations will need to be put into effect. This is also a big step toward legitimizing initial coin offerings. Until now, the ICO industry has been largely unregulated, albeit complete forbidden in some countries.