Within Europe, cryptocurrency regulation is a super hot topic. With many countries still weighing up the benefits and drawbacks of cryptocurrencies, Malta have stepped ahead of the game and has created new regulations that will see all aspects of cryptocurrencies and blockchain technologies into a new future on the island.
Maltese authorities have issued three new bills which will focus on cryptocurrencies. Namely the Virtual Financial Assets Act, the Malta Digital Innovation Authority Act, and the Innovative Technology Arrangements and Services Act.
According to Hedgeweek, the Maltese authorities have decided to omit the word ‘cryptocurrency’ from the acts, in order to avoid any negative connotations that surround the word, therefore, “Virtual Financial Assets” (VFA) will be used instead.
According to Hedgeweek:
“The newly introduced concept of VFA stands for any form of digital medium recordation that is used as a digital medium of exchange, unit of account, or store of value, which is, however, not electronic money, a financial instrument, or a virtual token.”
This is a really interesting way of seeing cryptocurrencies, clearly concerns surrounding the apparent negativity of the word cryptocurrencies has helped shaped a more open and liberal approach to Maltas new regulatory stance.
The regulations have not been designed to hamper the industry, rather in this instance Malta have taken a stance that ensures the cryptocurrency industry is able to flourish, in a safe and assured way.
According to Hedgeweek:
“The new pieces of legislation establish a framework for conducting and licensing initial VFA offerings, preparing white papers and regulating the activities of service providers, including exchange and trading platforms. They also lay down investors’ rights and obligations, as well as the MFSA’s and the Financial Services Tribunal’s powers in terms of ensuring proper execution of the crypto-related activities.”
See the full Hedgeweek report for yourself, here- https://www.hedgeweek.com/2018/05/23/264507/malta-takes-lead-cryptocurrency-race
With these new regulations, Malta are stepping ahead of the game in terms of cryptocurrency adoption, hopefully leading the way for a flourishing cryptocurrency and blockchain industry on the island. This is very important as ultimately, European countries are at risk of being left behind in a crypto-sphere that seems to be being led by states across Asia. Hopefully, more small localities like Malta will follow in the Maltese authorities footsteps, ensuring that the crypto-revolution continues to seep into Europe.