Why Malta is Officially Blockchain Island

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Ok, so... maybe the title is a tad hyperbolic, but Malta may as well be the official Blockchain Island by default. Malta has been making every effort to adopt blockchain technology and attract it's biggest figures and innovators. And it's worked quite well so far, attracting a number of crypto businesses and exchanges such as Okex and Binance to move to the island. Now Malta is setting a milestone becoming the first country to pass a regulatory framework for cryptocurrencies in to law. The Parliment of Malta has passed three bills related to Distributed Ledger Technology (DLT): the Malta Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act, and the Virtual Financial Asset Act.

A tweet from  Silvio Schembri,
Junior Minister for Financial Services, Digital Economy and Innovation within the Office of the Prime Minister of Malta.
The public face for Malta's DLT campaign.
 


What is the Malta Digital Authority Act?

The Malta Digital Innovation Authority Act establishes the Malta Digital Innovation Authority, a regulatory body, and certifies Distributed Ledger Technology platforms. It's pretty much what it sounds like, this is legalese that says they recognize cryptocurrency and blockchain officially. To them, it is no longer an alien space out of reach for regulation. This bill outlines the responsibilities of the newly formed agency and provides "legal certainty" for users that wish to utilize DLT platforms. The second bill, the Innovative Technological Arrangement and Services Act focuses on setting up DLT businesses, providing tools and assistance to build those businesses under Malta's newfound authority. And finally,  the Virtual Financial Asset Act will mainly regulate ICOs, exchanges, and wallet providers.

Malta is very optimistic about the future, particularly Silvio Schrembi who said, "We are not looking at short-term gains here, but rather at the long-term evolution of blockchain and DLT technology. For example, if we think about an issuance of an ICO, operators typically present a white paper with the ICO details. While other jurisdictions are looking at the white paper to see if it's certified, it's the technology behind that white paper that implements what is written. Currently, no one is looking at the technology. That is something that we are doing differently, said Schembri." And he has a very good point there. Malta is doing things differently, while most countries are looking at short-term trends and financial results only Malta has a much larger vision. They want to utilize blockchain technology for nearly everything and they want to make sure it works.

What does this mean for crypto?

Some may hail this as the end of an era in which Bitcoin (BTC) could roam the land free of any governmental constraints as more countries discuss DLT legislation and surely many will follow the example of Malta. Still, myself, and I'm sure many others, are happy to see regulation in the spirit of blockchain, keeping investors safe while encouraging innovation and development. With the numerous exchange hacks, thefts, straight up scams and vaporware coins over the past couple of years it may feel as though the space has lost its collective mind. Perhaps this is the first major step in mitigating risk and providing a safer environment for everyone involved. So far, the reception from the public has been overwhelmingly positive if the response to Silvio Schembri's Twitter (NYSE:TWTR) is anything to go by.

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Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content


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