An overview of the Maltese framework for the regulation of crypto-assets and the need for international standards of best practice for the sector

Abstract

Malta's initiatives in the Blockchain sphere started with the government's publication of a Consultation Paper on the establishment of the Malta Digital Innovation Authority; the Framework for the Certification of Distributed Ledger Technology Platforms and Related Service Providers; and a Virtual Currency Act'. This ultimately led to the enactment of three legislative acts; the Virtual Financial Assets Act'; the Malta Digital Innovation Authority Act and the Innovative Technology Arrangements and Services Acts; which together provide a holistic regulatory framework catering for regulation both from a technology and financial services perspective. Whilst the MDIA Act and the ITAS Act cater for the establishment of the Malta Digital Innovation Authority and the certification of innovative technology arrangements and services, the VFA Act provides a regulatory framework for virtual financial assets as a separate asset class for investment purposes. [excerpt]