According to Times Of Malta, Malta is surprisingly the first country in the world to present a regulatory system for blockchain companies to follow so that efficient and smooth flow of activities and dealings related to blockchain businesses can be guaranteed.
After the news broke that Malta wants to be the blockchain Island and is establishing legal framework for meeting their aim, companies immediately tried to avail the opportunity offered by sending requests for their respective blockchain businesses, however, Malta Financial Services Authority (MFSA) asked those blockchain companies to wait for the legal framework to come in to practice before sending any requests for authorizations and approvals. The instructions given by the agency stated that after the procedure, which was on their end, is completed, only then will MFSA be in a position to succor the needs of companies effectively. Apparently there is some waiting for the motivated and eager blockchain developers before they could start working in Malta.
MFSA has also said that it will be announcing publicly, the status of legal framework and its implementation information after which companies can send requests for approvals and authorizations to the agency. The main reason due to which MFSA is asking for some time from companies is that it is laying strong foundation for capturing the blockchain market by providing them favorable conditions in the future. Rules and regulations are needed for ensuring aim of capturing the market, maintaining stability and balance is required in some authorized legislation work by MSFA, that is time consuming. It further explains that MFSA prepares to handle blockchain by particularly looking forward to devise three bills aimed to regulate it.
The stepping stone in making these bills trending is marked by the initialization of unique legislation for blockchain companies. Legislation, when followed by blockchain companies, is looked upon by other countries seeking interests in blockchain, will make Malta more attractive and appealing for businesses. The procedure for underlying legislation is intended in series of Acts.
Virtual Financial Assets Act (VFAA), that was passed at the start of July 2018, made Malta the first country in the world to pass laws for blockchain. In addition to VFAA , Malta Digital Innovation Authority, and The Innovative Technology Arrangement and Services Act are planned by MSFA to manage Distributed Ledger Technology (DLT). Recent interactions and workings done by MSFA explains its concern. The report also said that MFSA is occupied with stakeholders and is setting up meetings with them to get their expertise for VFAA, that consists of three chapters that are further dealing with rules affiliated with VFAA agents, VFAA issuers and VFAA service providers. The complications regarding the legislation and the comprehensive details encompassing the Acts justifies the fact that Agency stopped temporarily and asked companies to wait until they come up with the regulatory system.
The Maltese Government has been showing interest in declaring Malta as a global market for cryptocurrencies by offering very friendly rules and regulations. They understand the importance of blockchain and that’s why are the ones to stand out in regard of establishing a strong base for future blockchain businesses. Their efforts and initiatives have been rewarded quite well by popular blockchain companies attractions towards Malta. A report suggests that Binance and OKEx have already arrived in Malta. These are the leading blockchain exchanges whose presence in Malta depicts existence of big blockchain business in the future. Although, MSFA has postponed all blockchain businesses until underlying legal framework comes in to action, the blockchain market is all set and it’s just a matter of time after which Malta becomes blockchain Island it wishes for.
Positive remarks by Maltese parliamentarians such as Silvio Schembri and Joe Portelli, who is chairman of the Malta Stock Exchange, prove that Malta is welcoming all kinds of blockchain startups. Silvio’s tweet explains the positive tone of Maltese parliamentarians as he approves of all the Acts that results in making them first country to offer benefits and opportunities for blockchain companies.
The 3 Bills that will regulate DLT have been approved by Parliament and enacted into law. Malta , the first world jurisdiction to provide legal certainty to this space. #blockchainisland @JosephMuscat_JM
— Silvio Schembri (@SilvioSchembri) July 4, 2018
Moreover, the statement of Joe extends the positive and friendly base offered by Maltese government. He said:
We believe security tokenization will be the next major wave in the digital asset arena and expect other stocks exchanges to follow our lead.
The report also mentions about other initiatives taken by MSE (Malta Stock Exchange) to establish their perception of friendly blockchain environment, like the launching of MSX PLC to create joint ventures in the country. All the departments, let it be MSE or parliament, are contributing as per their capacities to make sure Malta looks forward for all kinds of practices related to blockchain and is the first choice of blockchain startups.
Malta’s lead that made it conspicuous by becoming the first country to regulate blockchain businesses, set their stance and attitude towards blockchain. As mentioned earlier, the development of blockchain market that started immediately when Malta’s government and legislation bodies announced their workings, optimism and expectations for blockchain triggered investors and companies who were looking for such opportunities. Building on top of each other, the circumstances made the development of legal regulations inevitable. And now after announcements for easing blockchain policies for companies are made, Malta looks forward to establish itself as ‘The Blockchain Island’.