Malta Regulator begins consultation after crypto, blockchain bill publication
Malta Financial Services Authority (MFSA) has recently begun its consultation after the publication of crypto and blockchain bills. The fundamental motive behind this consultation is making the stakeholders aware of the consequences of these laws getting implemented.
As per the local media reports, the consultation phase that comes after the bill’s publication and before its implementation could delay the process to some extent, but considered quite crucial. Joseph F. Borg, who is working as a senior partner for WF Partners, told CCN that it is the standard procedure that needs to be followed in Malta when it comes laws related to the financial sector.
According to him, “Although the laws where published last week, they are expected to come into force in October of this year. This will give time for industry players to adjust accordingly to benefit from the transitory provisions as well as well as the authorities to cater the large amount of applications that will be submitted in the first few months”.
The bills focusing on cryptocurrency and blockchain were passed on 20th July, 2018. However, MFSA are holding the consultations prior to enacting these bills as laws. Malta’s regulatory body has said that the basic outlines of these laws are still being created and formulated. As per its announcement, Malta will enforces its new blockchain and cryptocurrency laws on October 1.
Out of the three bills, Virtual Financial Assets [VFA] Act is the one that focuses on the introduction and implementation of regulatory measures on the blockchain industry. When Malta’s Members of Parliament passed the VFA Act, the country became the first in the world to frame customized regulatory frameworks for businesses based on the blockchain technology.
The VFA Act led to the establishment of a regulatory body that is accountable to oversee the domain, Innovative Technology and Services [ITAS] Act and Malta Digital Innovation Authority [MDIA] Act. The latter looks into the matters of certifying and supervising technologies, including Digital Ledger Technology (DLT). The consultation period is ending on July 27th. As soon as the consultation phase gets over, MFSA would begin framing regulations pertaining to the VFA Act.
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