CRYPTO NEWS AGREGATOR
Thu, Oct 7, 2021 10:21 AM by Victoria O.

Watchdogs: Crypto Regulation In Malta

Malta Crypto Regulation

Malta is the first country to create a regulatory framework for Blockchain. The following draft laws have been adopted:

  • The Law on Innovative Technologies and Services (ITAS)
  • The Malta Digital Innovation Act (MDIA)
  • The Virtual Financial Assets Act (VFAA).

The Maltese decided to exclude the word "cryptocurrencies" from the regulations in order to avoid any negative connotations that surround the word. Instead, "Virtual Financial Assets" (VFA) will be used.

This is a really interesting way to describe cryptocurrencies that are facing negativity on many fronts. A more open and liberal approach to the new regulatory position of Malta is being formed.

Malta Today

Malta has become a rapidly growing hub for crypto companies, the following firms operate on its territory

  • Binance
  • OKEx
  • Decentralised
  • Ventures
  • Coinvest
  • Yovo
  • ICO Launch Malta
  • Exante
  • Ledger Projects
  • Learning Machine
  • nChain
  • STASIS
  • Loci Nexus
  • Bitmalta
  • Neufund
  • Blockchain Malta Association.

Business and Cryptocurrencies in Malta

At the moment, cryptocurrencies are not regulated by the legislation of Malta, so the exchange is equivalent to trading in commodities. Companies using cryptocurrencies do not need to obtain a license from the Financial Services Authority, if they do not implement collective investment programs and are not financial institutions or a provider of paid services.

Otherwise, the company must be properly licensed in accordance with the Law on Financial Institutions. In addition, cryptocurrencies are not considered investment instruments in accordance with the Law on Investment Services and do not require the use of licenses in accordance with the law.

The struggle for capital

Today, Malta is trying to move the center of the crypto trading world from the East to the West. Despite the fact that Japan, South Korea and Hong Kong have taken a crypto-friendly position, they have not yet decided on the regulation of the digital currency.

Therefore, the regulatory framework developed by Malta puts them at a very disadvantage – capital outflow has begun in the East. In Europe, Malta directly competes with Switzerland and, apparently, wins: pleasant and flexible taxation is another reason for startups to move to the blockchain island.

The Blockchain Island

Malta was ahead of Switzerland, which is loyal to the cryptocurrency, and was the first to approve the National Strategy for the Development of Blockchain Technologies (National Blockchain Strategy). Furthermore: the country has adopted laws on cryptocurrency and blockchain.

The digital currency, according to the country's Prime Minister Joseph Muscat, will become "the inevitable future of money", and it is stupid to ignore the inevitable.

Thus, Malta received the title of "the world's first blockchain island".


The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research.

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