After establishing itself as the Blockchain Island, 2018 was the year Malta cemented itself as The Blockchain Island with the implementation of three laws; the Malta Digital Innovation Authority Act, the Innovative Technology Arrangements and Services Act and Virtual Financial Assets Act. The MDIA Act deals with the setting up of the Malta Innovation Digital Authority, the ITAS Act deals with the technology arrangements and services such as that of a systems auditor and technical administrator and the VFA Act deals with virtual financial assets. These three acts have been approved by Parliament last year, and are the world’s first ever Distributed Ledger Technology legislations.
The Blockchain Acts have formed a regulatory framework which provides legal certainty to entrepreneurs, in such a way as to not hinder the furtherance of the industry. The role of the Authority is to harmonise practices, promote the use of innovative technology, promote transparency and auditability and promote legal certainty.
Malta has regularised DLT through its legal framework. Cryptocurrency and Blockchain technology are completely separate from one another. Blockchain is the platform which brings cryptocurrencies into play; however, licenses will be issued to Virtual Financial Assets operators through the MFSA. MDIA supports the MFSA by providing certification of the actual software or through an audit/review by a Systems Auditor accredited with MDIA.