Source: Chetcuti Cauchi Advocates
On the 1st November 2018, the final two Blockchain Acts officially came into force. Following a transitory period during which all licence conditions must be met, operators of DLT-based businesses will have to operate within defined parameters.
This will give their clients the peace of mind that for the first time, a DLT or crypto business has been examined by a regulator and meets a high standard. . These acts, the Innovative Technology Arrangements and Services (ITAS) Act and the Virtual Financial Assets (VFA) Acts are the final Blockchain acts to be enforced, following the launch of the Malta Digital Innovation Authority (MDIA) Act in July 2018.
How will consumers benefit from this?
Most countries around the world have yet to acknowledge the Blockchain revolution that is currently taking place, however, Malta has taken a leading position within the industry by being the first jurisdiction in the world to regulate DLTs. The future-proof legislation also provides clarity on the classification of DLTs, licence requirements and, where relevant, the application of existing EU or national law.
The enactment of three Blockchain Acts consolidates Malta as a Fintech hub within the EU and a pioneer within the blockchain industry, embracing the Blockchain revolution. Various other incentives have been introduced this past year with the aim of supporting and developing the use of Blockchain. Blockchain Scholarships have been launched by the University of Malta, giving students the opportunity to obtain Masters and Doctorate degree in DLT, while government agencies are acticvely analysing the potential of DLT to their areas of responsibility.