A Holistic Approach To Regulating Cryptocurrencies And Virtual Financial Assets In Malta

Malta's Parliament has recently approved three bills surrounding blockchain technology and cryptocurrency. These bills were presented by the government in order to instil legal certainty in the sector as well as to address banks' concerns in accepting companies working in the industry.

One of the bills is the Virtual Financial Assets Bill, the object of which is to regulate the field of Initial Virtual Financial Asset Offerings and Virtual Financial Assets and to make provision for other matters ancillary or incidental thereto or connected therewith. In essence this Bill provides the regulatory framework for cryptocurrencies and initial coin offerings (ICOs) and in respect of certain service providers which will be involved in activities related to ICOs. The bill will also outline the regulatory regime which will be applicable to cryptocurrency exchanges. Moreover, the bill endows the Malta Financial Services Authority (MFSA) with regulatory and investigatory powers