DLT Regulation in Malta
The Maltese Government published three bills relating to Distributed Ledger Technology (DLT) on 22 May 2018. The bills were the following:
The proposed Virtual Financial Assets Act (Bill)
The Act shall regulate the field of Virtual Financial Assets (including DLT assets such as virtual tokens, virtual financial assets, electronic money and financial instruments which intrinsically depend on, or utilises distributed ledger technology), DLT exchanges (such as cryptocurrency exchanges), Initial Virtual Financial Asset Offerings (such as ICOs) and make provisions for any ancillary matters.
The proposed act states that no person shall provide a VFA service (eg reception and transmission of orders, dealing on own account, portfolio management, custodian or nominee services, investment advice, placing of virtual financial assets and operation of a VFA exchange) in or from Malta unless in possession of a valid VFAA licence.
The proposed Innovative Technology Arrangements and Services Act (Bill)
The Act shall regulate designated innovative technology arrangements (such as software and architecture used in designing and delivering DLT and smart contracts and related applications) and services (such as review services and technical administration of innovative technology arrangements as system auditors or technical administrators) and makes provisions for the regulatory functions of the Malta Digital Innovation Authority in this regard.
The Malta Digital Innovation Authority Act (Bill)
The Act shall provide for the establishment of an Authority to be known as the Malta Digital Innovation Authority which will be responsible for supporting the development and implementation of guiding principles and promoting consistent principles for the development of visions, skills and other qualities relating to technology innovation (including distributed or decentralised technology) and to exercise regulatory functions regarding innovative technology arrangements and related services.
We are following the developments with interest and expect the bills to be debated in Parliament shortly. For any more information regarding DLT in Malta, please contact us at firstname.lastname@example.org