Malta, which has earned the reputation for being known as “the world’s first blockchain island” has once again set another milestone achievement. On July 4, 2018, the Maltese Parliament unanimously approved three bills into law, establishing the first regulatory framework for blockchain, cryptocurrency and DLT (Distributed Ledger Technology).
The three bills are; The Malta Digital Innovation Authority Act, the Innovative Technological Arrangement, and Services Act, and the Virtual Financial Asset Act.
A local news media Malta Today first reports that the bills were proposed to make Malta a blockchain friendly country with the intention of attracting foreign investors. Malta’s Junior Minister for Financial Services Silvio Schembri via a tweet stated that the country is the first [in the world] to provide legal certainty to the cryptocurrency industry. He also noted that these newly passed laws would facilitate rapid economic growth as more foreign investors would choose Malta because the country now has the necessary means to operate in a fully regulated environment.
Malta: A Blockchain-friendly Island
Malta has established itself as a pioneer in digital-based economic innovation and has continually advocated for the widespread adoption and use of blockchain-related technology technologies. In recent times, it has attracted notable cryptocurrency businesses like Binance, OKEx, and NeuFund.
A consultation paper on DLTs released by the Financial Services Ministry disclosed that Malta is providing the necessary tools so that companies in this sector can operate. It further stated that the proposed framework will offer legal certainty in a space that is currently unregulated.”
New Laws: A Milestone Achievements for Malta
Prime Minister Joseph Muscat, expressed his belief that blockchain technology, DLT, and cryptocurrency was the way to go in terms of innovation. “We are excited about what this will lead to in the future,” he said.
Another cryptocurrency industry player, Dr. Jean-Philippe Chetcuti CEO of a Maltese-based law firm, Chetcuti Cauchi Advocates applauded the move stating that the passage of the new legislation is “a momentous milestone for Malta as a forward-looking economy, truly confirming Malta as the ‘blockchain island.” He also believes that foreign companies will look towards Malta in committing to further investments comfortably.