Malta seeks to become the most hospitable country for cryptocurrency companies seeking to work in the legal field.

The Government of Malta published three bills that create a regulatory framework for the cryptocurrency market. They are the Virtual Financial Assets Bill, the Malta Digital Innovation Bill and the Innovative Technology Arrangements and Services Bill.

The Virtual Financial Assets Bill deals with the regulation of initial coin offerings (ICO). It says that projects that attract funding through ICO must obligatory publish White Papers, that meets the requirements of the Maltese authorities. Namely they should:

  • Describe "the reason for the initial offer of virtual financial assets".
  • Describe in details the proposed technology and its advantages.
  • Describe in details the stability / scalability of the project.
  • Mention possible risks and proposals to mitigate these risks.
  • Describe in details the virtual assets, characteristics, function.
  • List payment methods.

The law also requires the disclosure of financial information of the issuing company.

The Digital Innovation Bill supposes that there will be created a special agency that will be responsible for the development of the blockchain industry and ensure the implementation of the decisions made by the Government of Malta in this area.

The new executive authority will promote the use of digital technologies in such sectors as finance, health and education, non-profit organizations, public administration and transport, and publish annual reports on the state of the sector. The head of the department will be appointed for a period of one year.

The Innovative Technology Arrangements and Services Bill determines the legal status of agreements made on blockchain.