Malta Is Accepting 3 Promising Acts of Crypto Legislation
On Tuesday, the Cabinet of Ministers of Malta approved three bills regarding the cryptocurrency. For this reason Virtual Financial Assets Bill stays the most important act of legislation that creates a regulatory framework for cryptocurrencies and ICOs.
Another two bills that passed on Tuesday were the Malta Digital innovation Authority Bill and the Technology Arrangements and Services Bill.
Yet none of the mentioned three bills is law– before they are included in the books, each of them must be discussed by the House of Parliament.
At least one influential parliamentary figure worry for the bills. Silvio Schembri, Parliamentary Secretary for Financial Services, Digital Economy, and Innovation, said that “once new laws surrounding blockchain technology and cryptocurrency are enacted in Malta, banks would be less reluctant to welcome companies working in the industry, presumably due to the legal certainty it would provide.”
He added that putting regulations on the crypto market should “ensure that the three main principles of financial regulation are adhered to and will be a market that protects the investor and provides market integrity and financial soundness.
Bills are just the latest steps to position itself as an access point for crypto and blockchain. Morgan Stanley strategist Sheena Shah said in a report to customers published this Wednesday that “the majority of cryptocurrency trading volumes operate out of companies legally located in Malta.”
Moreover, Valletta-based Mamo TCV Advocates law firm, which is specialized in civil, commercial, and corporate law, said that “malta has witnessed an exponential worldwide interest from exchanges seeking to relocate to Malta and issuers of ICOs wishing to launch from Malta. The proposed bill will further strengthen Malta’s position on the DLT front and solidify its reputation as a blockchain island,” referring to the Virtual Financial Assets Bill.
The world’s largest crypto exchange Binance is among those who have said that they are moving headquarters to the little island country.