The Blockchain Island in the Mediterranean

in #crypto6 years ago

Malta has recently enacted three laws that facilitate registration of virtual assets and companies operating in the sector.

One of three recent and significant legislative developments in the field of blockchain and Distributed Ledger Technology ('DLT') promulgating a framework for "Innovative Technology Arrangements and Services" ('ITAS'). The ITAS Bill is intended to go hand in hand with the also newly publicised Malta Digital Innovation Authority Act (the 'MDIA Act', and the Virtual Financial Assets Act (the 'VFAA')

The Malta Financial Services Authority has issued consultation documents that allow the industry to hive its comments prior to issuing the regulations https://mfsa.com.mt/pages/viewcontent.aspx?id=674
This consultation process is important as the new regulations will be based on the outcome and conclusions from this consultation process. Indeed Malta is the first jurisdiction that has regulated the industry and is officially recognising virtual financial assets.

The laws and regulations issued by Malta, which is a highly reputable jurisdiction, gives licence holders a trust building mechanism that may attract more investors. The VFAA and the subsidiary legislation delve into the definitions of the various instruments from virtual tokens to money market instruments amongst others. It embraces other EU directives which gives the legislation even more credibility. Most importantly there is an emphasis on knowledge, due diligence and anti-money laundering. One important aspect that comes out from the current proposed regulation is the presence of two key personnel in Malta which gives also assurance of continuous liaison with the Authority and reduces the risk of fraud and non-traceability of promoters.

Apart from the above legislation, promoters will also be looking at the advantageous tax system in Malta. One may also consider also incentives given by Malta Enterprise which includes tax credits, grants and also industrial space. There are also incentives when it comes to high skilled individuals transferring to Malta who could benefit from a flat tax rate of 15 percent.

Erremme Business Advisors is currently advising various ICOs and Virtual Stock Exchanges that are considering to register in Malta following the 1 October 2018 deadline. Erremme Business Advisors will also be present at the Delta Summit in Malta which is backed by the Government of Malta.

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