Category: DLT Regulation

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Crypto-giants Binance opens a bank account in Malta

Categories Blockchain, Cryptocurrency, Malta, Law, Bank, The Blockchain Island, DLT Regulation, E&S Group, Cryptocurrency Exchange

Crypto-giants Binance opens a bank account in Malta

In May 2018, the world’s largest cryptocurrency exchange, Binance, announced that it would be opening offices in Malta. The reason for their move was due to tighter restrictions on cryptocurrency activity in Japan and the fact that the Maltese government was legislating in favour of the cryptocurrency industry.

 Crypto-Euro trading pairs

In an interview given last week, CEO of Binance, Changpeng Zhao announced that they had successfully opened a bank account in Malta to enable them to conduct business. This also coincided with the news that Binance would soon offer crypto-Euro trading pairs on their exchange. This news reinforces Malta’s position as a leading jurisdiction for cryptocurrency related businesses and it is expected that other service providers will soon follow suit.

Banks have been traditionally wary of businesses that are operating in the cryptocurrency sphere, so Binance’s latest achievement is a big success as well as a significant step forward. It is hoped that this recent development will mark the beginning of a period of understanding and mutually beneficial assistance between local banks and those wishing to engage in the cryptocurrency field.

The bank that Mr Zhao used to open the account and any details on the type of account opened have remained confidential at this stage. However, many believe that other Maltese banks will address their own policies in light of the news.

The Blockchain Island

Malta has been touted as the ‘blockchain island’ and as well as Binance. Other companies such as Okex, BitPay, and DQR have all announced their intentions to call the EU Member State home.

Whilst Malta has announced three new bills that will come into force in due course, setting up a cryptocurrency business on the island still requires a high level of sector and local know-how. At E&S, our team of legal experts, accountants, business consultant, and finance specialists- all with considerable experience in the field- are on hand to guide clients through the process from A-Z.

E&S offers a full portfolio of services such as company incorporation and formation, investment service licenses, company management, and of course, setting up the right bank for you and your businesses needs. We also offer advisory services to ICOs. To find out more, contact us at [email protected] or by calling us on +356 2010 3020.

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3 Bills are published – Malta is reassuring itself as the Blockchain Island.

Categories Malta, The Blockchain Island, DLT Regulation, Regulation

3 Bills are published – Malta is reassuring itself as the Blockchain Island.

Yesterday, the Maltese government published the 2nd reading of the 3 progressive laws regulating blockchain companies. The government launched these laws in the wake of the launch of the Delta summit which is happening in Malta on the 3rd to the 5th October 2018.

During a video conference call, Malta’s Prime Minister Joseph Muscat stated that “Malta is one of the first countries worldwide to regulate this technology creating an ideal ecosystem for companies, start-ups and investors to meet and share insights. Also, to build the future of blockchain together.”

The government’s vision is to attract more blockchain based businesses to choose “The Blockchain Island.” Consequently, Malta has already set blockchain based projects which are underway to be used in the public.

Due to strict regulations implemented by other jurisdictions around the world, Malta’s clear approach on blockchain is attracting new businesses to the island. Malta’s clear set bills are one step ahead from other countries with a vigorous ecosystem, thus become aware of unlawful business dealings within the industry. In the process, many blockchain based companies have shifted their business to Malta.

These set bills will regulate the whole sphere of blockchain in a positive outlook, supporting the growth of this ever so important industry. The government is setting up the Malta Digital Innovation Authority (MDIA) operating under the Malta Financial Services Authority (MFSA), which shall provide legal certainty to all Distributed Ledger Technology (DLT) based companies. The second bill, the Virtual Financial Assets Act will regulate all cryptocurrencies, Initial Coin Offering (ICOs) and also regulate crypto exchange companies. The last bill is the Innovation Technology and Arrangement Services Act, which encompasses the framework on how the MDIA will work. If you would like to read more on the laws please click on the respective law below.

 

E&S Group is a leading law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at [email protected] to find out how E&S can help you in ‘making things happen’.

For more information click the link.

 

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DLT and Cryptocurrency laws were presented in the Maltese Parliament.

Categories Blockchain, Cryptocurrency, Regulatory, The Blockchain Island, DLT Regulation

DLT and Cryptocurrency laws were presented in the Maltese Parliament.

Yesterday Tuesday 24th April, the Maltese Parliament has presented and passed three bills associated with the distributed ledger technology and cryptocurrency. Parliamentary Secretary Silvio Schembri presented the first reading of the following laws in parliament; The Malta Digital Innovation Authority Bill, the Technology Arrangements and Services Bill and the Virtual Financial Assets Bill.

How does Distributed Ledger Technology (DLT) work?

DLT technology is a new storage system which distributes data information in a decentralised blockchain. Every block within the blockchain are directly linked and processing information to each other. In addition, each block is secured by a complex encryption known as ‘cryptography’, which it is difficult to tamper with. Whenever a transaction is processed a timestamp is issued ensuring that the data is approved. Moreover, DLT technology cannot alter data and every processed data cannot be modified. Moreover, information stored in the blockchain is there to stay.

Why are these three bills on DLT and cryptocurrency important?

The first bill presented was the role of Malta Digital Innovation Authority (MDIA). The role of the MDIA is to certify DLT platforms, enabling a legal certainty to companies or persons willing to use these platforms.

This government agency will accredit DLT platforms such as blockchain, verifying and accept information processed on the platform. MDIA has the responsibility to detect foul play, making sure that the information is genuine. Through the MDIA, persons using the DLT platform will be assured that these certified services are genuine, trustworthy and efficient.

The second bill, the Technology Arrangements and Services Bill, focuses on recording Technology Service Providers and the certification of Technology Arrangements. This system will work via administrators and auditors making sure that the platform is lawful.

While the third bill deals with virtual currencies. In fact, the Virtual Financial Assets Bill is set to regulate the provision of virtual currencies set by ICO’s (Initial Coin Offering).

In a press conference, Mr Schembri stated that DLT companies and international regulators are showing interest in working with the Maltese government thanks to these progressive regulations.

E&S Group is a leading law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at [email protected] to find out how E&S can help you in ‘making things happen’.

For more information click the link.

 

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