- Malta will introduce two new blockchain acts on the 1st of November
- The acts will set down regulations for ICOs
- The country has been very welcoming towards the blockchain industry
Malta has, for a long time, been referred to as ‘blockchain island’ and for good reason. Few countries have been quite as welcoming to the blockchain industry with dozens of blockchain businesses moving there due to their favorable policies.
As a result of this increased business, Malta has decided to create more structure around the blockchain industry to keep up with its ever-changing nature.
By the 1st of November 2018, the Innovative Technology Arrangement and Services Act (ITAS) and the Virtual Financial Assets Act (VFA) will become law in the country.
The Innovative Technology Arrangement and Services Act
This act will help set the framework in place for the implementation of blockchain related laws. Considering the likely changes that will take place over the next few years in the blockchain industry, this will prove to be quite useful.
The act will serve as the foundational laws by which blockchain businesses will be allowed to exist and function within the country.
The Virtual Financial Assets Act
This act differs from the ITAS act in that it is more a specific set of guidelines rather than general ones. This act gives the guidelines for the issuing of ICOs. One of the most important of these guidelines is the disclosure of the financial history of the institutions in question.
ICOs have greatly increased in popularity over the last few years and this sort of action serves to protect both the investors and legitimate projects.
What this means
While Malta as a nation has been very welcoming to the blockchain industry, there is the need for lay down regulations. However, these regulations are not a sign of hostility but of precaution. Warnings have been given out to members of the public in some countries due to the fraud that sometimes goes on in the blockchain industry.
These laws were first endorsed by the government of Malta in July and this makes Malta ahead of the curve on laws that specifically cater to blockchain technology.
This comes as no surprise as Malta is extremely hospitable towards blockchain, with plans to host the Malta Blockchain Summit from the 1st to the 2nd of November 2018, ironically, just as the laws will begin to take effect.