Malta just announced the passage of three new laws aimed at regulating the growing blockchain sector. The laws: Digital Innovation Authority Act, Virtual Financial Asset Act, and Innovative Technological Arrangement and Services Act, are considered the first of their kind.
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So what do these new laws do? The Digital Innovation Authority Bill was enacted to create a new regulatory body, the Malta Digital Innovation Authority (MDIA). The job for this agency will be to figure out just how credible Distributed Ledger Technology platforms are and regulate accordingly.
The Virtual Financial Asset Act will verify whether the tokens ICOs are trading should be legit and tradeable on secondary markets or not and the Innovative Technological Arrangement and Services Act will assess technology service providers and determine whether to certify their technology.
These new laws provide a much needed sigh of relief for investors, blockchain companies, and cryptocurrency exchanges who choose to move their operations there as the regulations will give them the stability they need to operate easily rather than having to deal with unfavourable regulations imposed upon them in other countries.
The results of their openness to the blockchain sector certainly are paying off for Malta as they’ve already attracted three of the top cryptocurrency exchanges by volume: Binance, OKEx and BigONE, with likely much more investment to come.
About the author:
Hans Lekker is a cryptocurrency news reporter for Grizzle, The Language of New Money. Grizzle identifies the opportunities and risks for the new money paradigm, from a macro ‘big picture’ perspective to actionable cash-generating ideas. Visit us at grizzle.com.