Malta’s Blockchain Island Yet To Enforce Cryptocurrency Regulatory Framework
Malta is becoming one of the biggest cities for crypto platforms, so it makes sense that they are establishing some ground rules. However, the new regulations have not been put into effect yet, despite the “Blockchain island” hype.
There are presently three bills that have been passed by the Parliament in the area, which discuss concerns with cryptocurrencies, blockchain technology, and distributed ledger technology. The laws have already been passed in June, and they have many changes to the ways that cryptocurrency business run. However, Malta’s FSA warns companies not to get ahead of themselves because, as of July 20th, the one of their laws is not being enforced yet.
The whole regulatory measure, which is being called the “Virtual Financial Assets Framework,” will work alongside the Virtual Financial Assets Act. The framework is not done yet, so Malta’s FSA is not taking applications yet for approval or authorization of these different platforms. Even though there have been timelines for many other updates to the regulations, there is no clear date when companies will need to abide by the framework.
The only indication is that the government has provided is that it will not be in effect until,
“such date as the Minister for Digital Economy may establish by notice in the Government Gazette.”
However, even with uncertainty, Malta has the nickname “Blockchain Island,” and they are the most user-friendly and company-friendly jurisdictions in the world. That is what has earned them the attention of some of the most prominent crypto platforms, like Binance and OKEx. Binance even plans to partner up to create the first “decentralized and community-owned bank,” which would be based in Malta. The project, once complete, will be called the Founders Bank.