Malta has approved three bills that legalize the use of blockchain, cryptocurrencies and ICO as a financing method, making Malta one of the most attractive jurisdictions in the crypto industry.

The Government of Malta approved three bills that create a regulatory framework for the cryptocurrency market.

Through innovation, Malta is fast becoming a pioneer in economic innovation in order to strengthen its economy through the creation of a new economic niche. This is resulting in other bigger countries following the footsteps that Malta took in this field, the official statement of the Maltese government reads.

“I am optimistic that further companies will choose Malta to operate from with a system that offers stability and that will eventually result in further economic growth”, said Silvio Schembri, Secretary for Financial Services, Digital Economy and Innovation.

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.