Malta’s Cryptocurrency Regulations

Malta’s Cryptocurrency Regulations and its effect on the world

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It is no longer news that Cryptocurrencies together with other digital ledgers and assets are taking the center stage in the world of digital finance. We see a great deal of transactions on a daily basis going through the channels of these digital assets. Malta has shown a great interest in the regulation and operation of these digital ledgers and assets. Coming up with a number of laws and regulations, Malta is positioning itself for a very active participation in the world of digital assets and the transactions that go with them.
Malta’s regulations on digital assets will go a long way to affect her economy as well as that of the world, especially in relation to digital assets.

The need for Regulations

Financial transactions are the height of the world’s economy. It is therefore of great importance that they are fool-proof and can be trusted. Before the coming of cryptocurrencies, all financial transactions were regulated by National governments through their Central Banks. This helped to ensure a Centralised Control of financial transactions. With Cryptocurrencies and other digital assets such as blockchain and tokens, there is no form of centralized control over operations and transactions. They operate a Decentralised Control system. To guarantee another level of security of transaction in digital assets, the transactions are encrypted on the blockchain and the nodes from which the transactions emanate operate an anonymous status.

Even though the blockchain is designed to abhor all forms of fraud and reduce it to the barest minimum, there is still the need to envisage that some level of underhand dealings may still come to play and this can be really terrible, considering the large volume of transactions and the high level of volatility that these digital assets bring on a regular basis.
Malta is on the verge of placing some level of control over all forms of virtual assets, digital ledger transactions as well as ICOs.

Some of Malta’s Regulations

Four Regulations are outstandingly on the ground in Malta to check and regulate transactions in digital assets. They are:
1. The DLT and Cryptocurrency Bill – this Bill was put in place to regulate Digital Ledger Transactions as well as the operations and trading of Cryptocurrencies;
2. The MDIA Bill – this Bill will work to create the Malta Digital Innovation Authority (MDIA)
3. The TAS Bill – this Bill deals with the Registration of Technology Service Providers as well as providing certification for Digital Ledger Transactions (DLTs) and other smart contracts;
4. The VC Bill – this will regulate all Virtual Currency service providers such as wallet providers, exchanges, brokers, investment advisors, asset managers as well as market makers
The effect of Malta’s regulations.

Where there is no law; there is no wrong!

Malta is taking advantage of the great potential that is coming with the influx of digital assets. Seeing into the future, Malta is positioning herself strategically to be a key and central player in the soon-to-come new world of digital assets economy.
It is only natural that investors and traders will move to an environment that provides them with the needed secure and conducive environment to do business and carry out their transactions. Malta’s regulations are already beginning to affect the world greatly.
As was experienced with the coming of Malta’s IGaming Regulation in 2017, a whole lot of players in the gaming industry shifted their operational bases to Malta. This trend is again holding sway as a good number of digital asset players are actively joining the speed lane, heading for Malta.
Very recently, in August 2018 precisely, the news of ZB.com relocating to Malta hit the airwaves. ZB.com is the fifth largest crypto exchange in the world. Their relocation to Malta is in reaction to the new environment Malta has created for the digital assets industry.
Looking forward, Malta is set to go into two big conferences: Malta Blockchain Summit, and Delta Summit; which are scheduled for October and November 2018 respectively. There is no gainsaying that these two conferences will signal the birth of the digital asset trading era in Malta.
More influx of crypto-related companies into Malta is anticipated. Not just cryptocurrency-based investors alone but all players and stakeholders across all fields of the digital asset industry will be in the picture. With the conducive environment brought about by Malta’s regulations, we are about to see Malta set the center stage for the great digital asset revolution that is about to come sweeping across the globe.

Marco Barchetti

Malta’s Cryptocurrency Regulations
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