Malta became the first jurisdiction in the world with the official status of the cryptocurrency. The Parliament of the island state adopted three bills related to the development of the industry – the Law on Digital Innovation, the Law on Innovative Technological Agreements and Services and the Law on Virtual Financial Assets. It is reported that the new rules are designed to eliminate legal uncertainty and improve the investment climate in the country.
The Malta Financial Services Authority (MFSA) noted that at present, blockchain companies have to wait for the formal entry into force of the developed structure before they can apply for approval and authorization. The financial institution’s statement also explains that the digital assets legislation passed by the national parliament on July 5 will regulate the initial offering of coins (ICO) and digital assets trading, setting rules for brokers, stock exchanges, purse suppliers, asset managers, investment advisors and investors. MFSA did not specify the exact date of entry into force of this structure but explained that in the future, residents who open their branches on the island will not have to wait long for permission to carry out activities.
The Financial Services Authority is currently working on rules for the use of digital assets, which should complement the legislation. As soon as the consultation period is over, the requirements for issuers, virtual financial assets, and service providers will be made public.
The government of the island state notes that the legal norms, combined with two other laws – the Law on Innovative Technologies and Services and the Law on Digital Innovation Management in Malta – are aimed at ensuring openness and transparency of the market, protecting consumers’ rights and industry.
Let’s note, Malta is called “blockchain island” for the reason that this country adopts laws and other initiatives that promote the development of digital currencies on its territory. Realizing this name, the state has already attracted several large crypto exchanges, including two of the largest platforms for the volume of trading – Binance and OKEx. So, Binance earlier this month reported on its participation in the decentralized project in Malta, called the “Founders Bank”. The Institute will focus on servicing the technological and cryptographic business and will offer banking solutions of the highest level. After the launch, scheduled for the first half of 2019, it will be the first decentralized social bank in the world.