Malta is one of the first countries in the world regulating Blockchain technology via 3 bills:
- The Malta Digital Innovation Authority Bill (MDIA)
- The Technology Arrangements and Services Bill (TAS)
- The Virtual Currencies Bill (VC)
The three bills produce a comprehensive and unique legal framework in Malta that offers legal certainty and regulatory coverage of Blockchain technologies and crypto-currencies.
The Malta Digital Innovation Authority Bill
The Malta Digital Innovation Authority puts the focus on innovation across all sectors of the economy, while protecting the public interest. It will ensure that there is no overlap between other national competent authorities, when their regulatory actions address the same technological innovations.
The Technology Arrangements and Services Bill
The Technology Arrangements and Services Bill will institute a framework for “Technology Arrangements” such as:
- Distributed Ledger Technologies (Private or Public Blockchains)
- Smart Contracts
- Decentralized Autonomous Organizations and similar
The framework recognizes particular subjects that will play a role in a registration or certification process. The subjects are:
- System Auditors
- Technology Service Providers
- Administrators (both technical as well as fiduciary)
A Technology Service Provider may seek registration with the MDIA, on a voluntary basis.
The System Auditors and the Adminsitrators need to be approved by the MDIA.
The Virtual Currency Bill
The Virtual Currency Bill defines a Financial Instrument Test whereby clear criteria are given to determine if a Virtual Currency or an ICO should be considered as a financial instrument. In that case, existing investment services legislation applies, including among other MiFID and the Prospectus Directive. The intent is to ensure investor protection, market integrity and financial stability.
Even for ICOs / Virtual Currencies that do not qualify as a financial instrument, the bill sets out minimum transparency requirements, in particular for the kind of information that issues need to provide to prospective investors.
A significant expressed intent is that pure utility tokens would not qualify for any kind of regulation.
