The government of Malta has joined the league of countries relaxing tough position on the use of cryptocurrencies. Recently, the government of Malta announced that it intends to establish an agency that would oversee the transactions and use of cryptocurrency blockchain. This development has led to wild jubilation among crypto traders and investors across Malta. Some investors took to social media to celebrate the development and tagged it “a milestone in the financial sector of Malta”.
The government issued a draft policy detailing how its plans to set up a body that would be christened “Malta Digital Innovation Authority”. The agency would have the mandate to streamline all virtual currencies activities as well as coordinate the certification of blockchain platforms.
Recently, Valletta issued a similar policy to legislate how cryptocurrencies would be conducted and regulated without affecting the roles of intermediaries.
GOVERNMENT INTEND TO PROVIDE TRUST AND LEGAL CERTAINTY
The Malta Digital Innovation Authority will be saddled with the responsibility of streamlining blockchain platforms and regulating the use of cryptocurrencies to avoid users abusing and cloning fake identities to swindle members of the public. This new policy by the government of Malta will grant crypto companies “peace of mind”, as they would not leverage on the blockchain technology to make a trans-border transaction.
The establishment of the agency stem from the fact that crypto companies leverage on the blockchain technology to make an international payment, which results in a loss in the earnings of financial regulators in Malta. Financial regulators have been lamenting the drop in the country’s earning due to the activities of cryptocurrency investors. Authorities were worried that fraudulent activities could be perpetrated using the blockchain technology since it wasn’t under any regulatory control. Government house sources suggest that there are several benefits cryptocurrency investors will enjoy when the establishment of the agency comes to bear.
The Parliamentary Secretary, Silvio Schembri, who is the head of the Digital Economy in a press release during a stakeholder’s conference, explained the position of government regarding the new draft policy. He tagged the document an “historic moment” in the history of Malta. He explained how the Maltese government intends to carry out the implementation of the new policy in different stages with a view to regulating the activities of crypto investors.
“Firstly, we intend to set up an agency that would be christened Malta Digital Innovation Authority. The body would be in charge of regulating cryptocurrency companies and certifying blockchain platforms,” Mr. Silvio posited. “After establishing the agency, the next stage on our list would be to streamline how ICOs are conducted. Thereafter, we will conclude the implementation by regulating transactions involving cryptocurrencies,” Silvio continued. Third parties wallet providers, exchanges, asset managers, banks, brokers, and investment advisors are expected to comply with this new policy to the latter.
“The financial intelligence Analysis Unit and the police would be carried along as we begin the implementation of this new draft policy,” Silvio in a closing remark further asserted.