By Euro Company Formations, 27.08.18
On 4 July 2018, the Maltese Parliament passed 3 bills to establish the first regulatory framework for cryptocurrency and data ledger technology (DLT) such as blockchain. The bills have been designed to make Malta one of the most desirable locations to incorporate a cryptocurrency company and operate in blockchain space. Entrepreneurs are taking notice of Malta as the first country in the world layouts official crypto regulations for operators in the blockchain, virtual currency, and DLT space.
The Maltese government has been advocating for the cryptocurrency regulations. This has resulted in the 3 cryptocurrency and blockchain bills voted in unanimously by the Maltese Parliament and swiftly passed into law. Malta has established itself as an early pioneer in the economic innovation of cryptocurrency; this bold move is expected to strengthen the country’s economy as it establishes a niche market for cryptocurrency companies.
Malta’s prime minister, Joseph Muscat tweeted, “We aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies”
The three crypto regulation laws are as follows:
1. MDIA Act
The MDIA Act (Malta Digital Innovation Authority Act) establishes the Malta Digital Innovation Authority and certifies DLT platforms. This law is centred around the internal governance arrangements and will outline the duties and responsibilities of the MDIA Authority when certifying DLT platforms. The focus is to ensure credibility and provide legal certainty for users who wish to participate on DLT platforms.
2. ITAS Act
The ITAS Act (Innovative Technology Arrangements and Services Act) covers the DLT arrangements and certifications of DLT platforms. This bill is primarily concerned with the regulation of designated innovative technology arrangements and of designated innovative technology services.
3. VFA Act
The VFA Act (Virtual Financial Assets Act) establishes the regulatory regime governing initial coin offers (ICO), cryptocurrency exchanges, wallet providers, etc.
How to set up a Maltese Cryptocurrency Company
Private Limited Liability Companies are the most popular business type for private and commercial ventures in Malta as well as for Maltese Cryptocurrency Companies.
We can assist you with all aspects of forming a Maltese Crypto Company and build a company package specific to your business needs. We are required to seek the legal opinion of a licenced professional to establish the specific activity the business falls under prior to registering any cryptocurrency business. This is important to determine whether the business will need to file for a business licence right away under regulations currently in force or whether the activity will qualify under the VFA Act in which case those companies already providing VFA services will have to apply for a licence within one year or lodge a whitepaper within 6 months in connection with ICOs, following new regulatory framework coming into force, which is expected later in 2018. Please contact us today to start the process.