The MFSA, recently introduced a consultation paper on the three blockchain and crypto laws that were passed earlier this month for screening out the regulations ranging from few exemptions, fees on offering various services by the crypto firms, control on assets, and administrative penalties including applications for the announcement of new legislative framework regulating ICOs and the anticipation on various virtual currency services for the stakeholders.
The time taken by MFSA is quite a standard procedure, accepting the delay, but to provide the best suited and fair practice for the sake of country’s growth and to follow the laws and jurisdiction in the financial services this is quite an important step, according to Joseph F Borg, the senior partner at WF Partners.
He further specified:
“Although the laws were published last week, they are expected to come into force in October of this year. This will give time for industry players to adjust accordingly to benefit from the transitory provisions as well as well as the authorities to cater a large number of applications that will be submitted in the first few months”.
Malta is unquestionably becoming the leading nation for blockchain-based partnerships in the ecosphere to come up with a robust regulatory system which is substantial and easy to be accustomed. The MFSA will publish the “Rule Book” by end of July after consulting with various service providers and industry stalwarts.
The MDIA Act is accountable for the certification and supervision of technology arrangements including DLT platforms and related service providers who apply voluntarily for registration under the Innovative Technology Arrangements and Service Act.
The VFA Act presented a new regulatory association which will be liable for supervising the sector, the Innovative Technology Arrangement, and Services Act. (ITAS) and the Malta Digital Innovation Authority Act (MDIA). The contribution of the Maltese Parliament can be seen in promoting a ‘financial instrument test’ which will conclude whether a DLT asset qualifies as electronic money, financial instrument, a virtual financial asset or a virtual token.
Regulators have been trying to develop and outlining the procedures under the VFA Act in order to publicize the laws while MFSA is actively consulting stakeholder opinions on regulations until July 27, 2018. Once the consultation stage ends, the MFSA will be in a position to launch the concrete rules and regulations for the VFA Act.