As we speak, the island of Malta’s PR machine is in overdrive. Late last month, the Maltese Parliament unanimously voted into law three cryptocurrency and blockchain bills, creating a comprehensive legal framework in support of the industry.
Note: This is the second article in a series. Be sure to read part one here.[1]
Three New Acts
The three bills[2] that were passed into law in June are The Virtual Financial Assets Act (VFA), the Malta Digital Innovation Authority Act (MDIA), and the Innovative Technology Arrangements and Services Act (TAS).
The VFA Act will regulate the notorious ICO market and require companies intending to raise funds in this way to publish in-depth whitepapers and make their financial history public. The MDIA Act lays out stringent regulatory procedures for the cryptocurrency and blockchain industry. It also establishes the Malta Digital Innovation Authority which will function as a regulatory authority for the industry and will be headed by a board of governors and a CEO. The TAS Act outlines the requirements for the registration and certification of entities that provide services to the industry. With a particular focus on the registration of exchanges, it is clear that this bill, above the others, was created to make Malta the most desirable jurisdiction for businesses operating in these sectors.
While these bills may seem great on paper, there are some unanswered questions. Why did so many industry leaders such as Binance[3], BitBay[4], and OKEx[5] announce their relocation to Malta before such a regulatory framework was confirmed? We should also consider the fact that many blockchain-related businesses reportedly[6] had a very difficult time opening bank accounts in Malta yet Binance, which has a history[7] of
