Malta has launched three bills dealing with the regulation of cryptocurrencies. So far, Malta has been attracted by friendly and welcoming attitude towards crypto start-ups. How the new rules affect this status now.
Malta is known as one of the great European oases for financial market transactions. The island is associated with low taxes for businesses and individuals as well as a generous handling of rules. But there are also restrictions on companies and a political class accused of corruption in Malta.
Now the government has tackled the issue of cryptocurrency regulation. In three draft laws, she outlines a framework for dealing with digital tokens and ICOs. Virtual Financial Assets Act, Malta Digital Innovation Authority Act and Innovative Technology Arrangements and Services Act mention crypto currencies under the name “Virtual Financial Assets (VFA)”, ICOs under the name “VFA Offerings” and crypto-exchanges as VFA exchanges. The government is trying to circumvent the sometimes negative connotation of cryptocurrencies in a location like Malta.
Rather, the term VFA stands for “any form of digital media capture used as the digital medium of the exchange, the unit of account or the store of value”. However, it is “not an electronic money, a financial instrument or a virtual token”. The use of virtual tokens should be limited to “the DLT platform on which it was issued.” The repayment for funds should only be “possible on such a platform directly by the issuer of such a DLT asset”.
The new legislation provides a framework for the implementation and licensing of initial coin offers, the creation of white papers and the regulation of the activities of service providers, including exchange and trading platforms. In addition, they determine the rights and obligations of investors as well as the powers of the MFSA and the Financial Services Tribunal with regard to the proper conduct of the cryptographic activities.
Thus, the “Wild West”, which is often associated with the cryptoszene and especially with ICOs, is also fenced in on Malta. However, this framework can prove to be a blessing for the long-term and sustainable growth of the crypto-economy.
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Categories: Crypto Currency