The Parliament of Malta has passed three bills into law that establish a
regulatory framework for blockchain technology, local news outlet
Malta Today reported July 4. The bills include the Malta Digital
Innovation Authority Act, the Innovative Technological Arrangement
and Services Act, and the Virtual Financial Asset Act.
Silvio Schembri, Junior Minister for Financial
Services, Digital Economy and Innovation within the Office of the
Prime Minister of Malta, tweeted about the passing of the
bills today, noting that the island nation is a pioneer in
providing a solid legal framework for blockchain companies:
“The three Bills that will regulate distributed ledger
technology (DLT) have been approved by Parliament and enacted into
law. Malta , the first world jurisdiction to provide legal
certainty to this space.”
Schembri said that the move taken by the Parliament
would put investors’ minds to rest as companies now have the
necessary legal tools to operate in a regulated environment. The
Junior Minister also expressed his optimism about companies
choosing Malta as their base of operations, saying that the
republic now offers a stable system that will “result in further
economic growth.”
Dr. Jean-Philippe Chetcuti of Maltese law firm
Chetcuti Cauchi Advocates, said the passage of the new
legislation is “a momentous milestone for Malta as a
forward-looking economy, truly confirming Malta as the ‘blockchain
island.’” Chetcuti noted that companies will feel more comfortable
“committing to further investment, and setting up in Malta.”
A multitude of blockchain and crypto business have
already located to Malta, as the country’s officials took
regulatory steps to become the “blockchain island.” Recently,
several cryptocurrency exchanges,
including OKex, Binance, and BitBay have set up operations in
Malta due to the development of a blockchain and crypto-friendly
space within the country. In May, the Transport Minister of Malta
announced a partnership with
U.K. middleware blockchain startup Omnitude to improve
the Maltese Public Transport Service using distributed ledger
technology.
Moreover, the Malta Gaming Authority issued a document with
guidelines on blockchain and cryptocurrency applications in the
gaming industry, aiming to apply standards to games that use
cryptocurrencies and blockchain technology. Last year, the
government of Malta also announced is was developing a
project to test the feasibility of using blockchain for the
recording of academic certificates.