A small European island in the Mediterranean, Malta, is becoming a blockchain hub after the launch of one of the largest cryptocurrency exchanges such as Binance, OKex, and BitBay. The endeavoring factor keeps on motivating the government to open up the entrance for cryptocurrencies and the blockchain.
Although there is a fast growing public acceptance of crypto, Malta’s new cryptocurrency regulatory framework is still yet to be approved and implemented. Maltese news outlet, Times of Malta, reported on July 20 that blockchain companies are required to hold the launch of their projects until the approvals and authorizations come into place and the legal framework with all the clauses.
In July 1st week, the Maltese parliament, with the hope of attracting foreign financial tech companies, has passed three bills comprising the regulatory framework for cryptocurrencies, blockchain, and distributed ledger technology with a view to drive innovation in blockchain-like technologies.
Malta believes the Mediterranean island can become a haven for cryptocurrencies like Bitcoin –the most familiar and prominent application of ledger technologies– but it also considers blockchain to transform the country’s transportation and education systems.
By scrutinizing stakeholder judgements about the new regulations, and considering some VFAA-related issues from fees to administrative penalties, The Malta Financial Services Authority (MFSA) is taking time for the judgement. They are not expected to announce the 1st chapter until July end through rulebook followed by two more chapters simultaneously considering Virtual Financial Assets Act (VFFA) for “Virtual Financial Assets Framework,” meant for issuers and service providers, which is one of the important legal issues to be considered for accepting request for approvals and authorizations under the recently passed law.
The delay is acceptable because in order to launch a full-fledged crypto-friendly regulatory environment the legal system of Malta has to be strong enough to overcome any fraudulent and unethical activity which can be a hindrance for this going “blockchain island.”