Malta Passes Bills to Make the Country the First 'Blockchain Island'

The three bills were enacted into law today making the country the first in the world to have a comprehensive legal framework for blockchain.

Loukia Papadopoulos

| Jul 05, 2018 09:10 AM EST

Created: Jul 05, 2018 09:10 AM EST

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Malta's Parliament passed three bills into law today written to establish the world's first comprehensive regulatory framework for blockchain technology in the country.

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The bills are the Malta Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act, and the Virtual Financial Asset Act.

Malta's Junior Minister for Financial Services Digital Economy and Innovation within the Office of the Prime Minister of Malta Silvio Schembri confirmed the announcement in a tweet.

A harbour for blockchain

Industry professionals worldwide replied congratulating the ministry on its new innovative laws. Followers said Malta was on its way to becoming an 'epicentre' and a 'safe, hub & harbour' for the blockchain industry.

Malta's DLT laws featured on Forbes. Malta is truly becoming the epicentre of Blockchain industry.@JosephMuscat_JM @SilvioSchembri https://t.co/ppsBYnIF42
— Dinah Seguna (@SegunaDinah) 5 July 2018

@SilvioSchembri - you made it! Congrats - Malta will become a safe ‚hub & harbour‘ in EU for the new technology of #knightsofblockchainisland! Sure many and #etherisc will join. https://t.co/cfxrcHPKnG
— No Ack (@not_ack) 5 July 2018

Speaking to Malta Today, Schembri said that the new regulatory framework was certain to attract more blockchain-related investment in the country. “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 the minister.

A first in the world

Maltese law firm Chetcuti Cauchi released a statement on their website praising Malta for becoming "the first jurisdiction in the world to have laws which comprehensively cover the treatment of cryptocurrencies, the launch of initial coin offerings and subsequent treatment of assets offered to investors as well blockchain/DLT service providers and services which they offer, including the setting up of cryptocurrency exchanges." The statement further said that Malta "had truly become the Blockchain Island."

1st comments from Dr @JPChetcuti on World 1st #DLT Laws enacted in #BlockChainIsland #Malta

Maltese Parliament unanimously approves World1st #Blockchain Legislation following the third reading. #blockchainlegislation #blockchainbills #cryptohaven #MaltaBlockchain pic.twitter.com/GdN1isAv9d
— CCA Malta Law Firm (@Chetcuti_Cauchi) 4 July 2018

The Innovative Technological Arrangement and Services Act and the Virtual Financial Asset Act will cover the regulation of digital ledger technologies and virtual financial assets to be supervised by the Malta Digital Innovation Authority. This authority will, in turn, be regulated through the Malta Digital Innovation Authority Bill, the third bill enacted today.

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The bills had been approved unanimously by Malta's parliament on June 26 and a CEO had even been appointed to the new authority. Stephen McCarthy was announced to take over the role, leaving his previous position as CEO of Malta’s Housing Authority.

Today Maltese Parliament unanimously approved 3 bills on DLT/blockchain, a 1st in the World. Honored to have driven these bills. Announced that Mr Stephen McCarthy will be the CEO of the new #Malta Digital Innovation Authority. #BlockchainIsland -SS
— Silvio Schembri (@SilvioSchembri) 26 June 2018

The introduction of these bills has led to the #BlockchainIsland hashtag that has been making the rounds in social media and has been widely used by Malta's political figures. Today's news saw Malta's Prime Minister Joseph Muscat tweet solely the catchy hashtag with a news article on the bill's enactment.