Malta has on the 20th July 2018, published the much awaited innovative legislation regulating blockchain. The three new legislative acts were recently approved by the Maltese Parliament, re-confirming the important role which Malta is playing in this field.
The Malta Digital Innovation Authority Act, establishes a new authority, which will be responsible for the certification and supervision of technology arrangements (including DLT platforms) and relating service providers who voluntarily apply for to be registered in terms of the Innovative Technology Arrangements and Services Act. Certification shall translate into a seal of approval which will be awarded on the basis of a number of conditions outlined in the same act.
The Virtual Financial Assets Act regulates the offering of virtual financial assets (ICOs), through a new licensing regime featuring on-going obligations both for ICO-issuers as well as service providers to an ICO. Malta has also introduced a ‘financial instrument test’ which will be used to determine whether a DLT asset qualifies as electronic money, a financial instrument, virtual financial asset or virtual token. Furthermore, the Virtual Financial Assets Act also provides the contents which a white paper must include, thus bringing standardisation to the market as well as providing reliable information to the investors.
The new laws will come into force on a date still to be established by the responsible Minister.