Following the Consultation Paper on the establishment of the Malta Digital Innovation Authority and the framework for the certification of Distributed Ledger Technology Platforms and related service providers, the Cabinet approved the three bills on 23 April which were also presented to Parliament for the first reading on 24 April.
The three bills presented are the following:
Malta Digital Innovation Authority Bill provides for the establishment of the Malta Digital Innovation Authority (the Authority). The primary function of the Authority will be to certify DLT platforms and hence providing legal certainty to the DLT platform users. It should be noted however that this certification will not be mandatory but purely voluntary.
Technology Arrangements and Services Bill sets out the regime for the registration of Technology Service Providers and the certification of Technology Arrangements through the system administrators and system auditors.
Virtual Financial Assets Bill sets out the framework for Initial Coin Offerings and the regulatory regime on to the provision of certain services in relation to Virtual Financial Assets (VFA). The intermediaries subject to the VFA Bill include brokers, exchanges, wallet providers, asset managers, investment advisors and market makers dealing in VFA.
Following the reading of the Bills presented to the Parliament a discussion will ensue between both sides of the House after which the Bills will be approved and passed into law. It should be noted that after the implementation of the Bills Intermediaries subject to the VFA Bill will have a period of six months to become compliant with the framework outlined.
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.