Category: DLT Regulation

Posted on

Malta – at the centre of the Distributed Ledger Technology

Categories Blockchain, Cryptocurrency, ICOs, Malta, Law, DLT Regulation, Smart Contracts, E&S Group, Technology, Cryptocurrency Exchange, Tokens, VFA Act

Malta – at the centre of the Distributed Ledger Technology

In the light of the new blockchain laws presented by the government of Malta, many fintech organisations praised the government’s progressive approach to these set regulations. The Malta Chamber of Commerce, Enterprises and Industry organised an interesting and detailed conference titled; ‘Blockchain: The New Regulatory Framework.’ E&S Group employees attended this conference to understand more about the three laws soon to be in force.

The Parliamentary Secretary for Financial Services, Digital Economy and Innovation, Hon. Silvio Schembri opened up the panel. He spoke about how Malta is becoming a Blockchain Island soon implementing laws that will ensure a safe crypto market on the island. Various influential people coming from various financial sectors spoke about the importance of blockchain technology. The discussion revolved around how the laws will help Malta in the sphere and being a trailblazer in the industry.

Many stakeholders coming from various industries in particular finance, legal, and IT attended the conference. Many interesting points came up during the discussions which brought about how private institutions are reacting to Malta’s DLT shift. In fact, some Maltese banks are welcoming ICOs as their clients. A bank, in particular, AgriBank has started to open up bank accounts to ICO clients. However, they have not started to accept cryptocurrency trading as it is still a bit of a grey area. Strict due diligence procedures also need to be followed by MLRO, making sure that all necessary AML procedures are in place. In addition, an MFSA representative spoke about the Financial Instrument test, VFA agents need to adhere to, presenting their final findings to the authority.

Since the industry is still in its initial stages, AML procedures need to be processed. In fact, the FIAU will have an important role to safeguard Malta’s reputation, seizing fraudulent companies from operating in Malta.

 

Are you looking for the best country to operate your ICO? Is Malta on your list and wish to know more what it offers? Check out the link here or send us an email on [email protected] or by calling us on +356 2010 3020. We make things happen!

Read More
Posted on

Malta – the home of crypto

Categories Blockchain, Cryptocurrency, Malta, ICO Legal Service, The Blockchain Island, DLT Regulation, E&S Group

Malta – the home of crypto

The island of Malta has steadily been building its reputation as a leading jurisdiction for blockchain and cryptocurrency markets. As a result, the Maltese government has positioned itself attracting future blockchain based investment to the island.

Lagarde speaks in favour of cryptocurrencies

Last May, three laws regulating various aspects of the blockchain industry passed through the Maltese parliament. This positive approach towards cryptocurrencies was also met by Christine Lagarde. In a blog post, the head of the International Monetary Fund affirmed the global benefits of cryptocurrencies. She also stated that cryptocurrencies such as Bitcoin could pave the way for fast and inexpensive transactions. Moreover, the blockchain technology could make financial markets safer and more transparent.

Upon the publication of Ms Lagarde’s comments, the price of Bitcoin registered a rise. Although, it is not clear if these gains are directly related.

“Just as a few technologies that emerged from the dot-com era have transformed our lives, the crypto assets that survive could have a significant impact on how we save, invest and pay our bills,” Ms Lagarde wrote in her blog post.

In her blog post, Ms Lagrade repeated comments she made to the Bank of England last year. She had called for a more even-handed approach towards regulation. This would eventually lead towards regulating such currencies, eliminating exploitation of benefits whilst minimising associated risks.

A flexible framework

Malta’s proposed acts that are soon coming to force, are to provide a flexible framework to entrepreneurs. These laws are to provide substantial growth and development to the sector. It also offers protection for who is investing in it.

A further boost for the island was the announcement that the world’s largest cryptocurrency exchange, Binance. This world-renowned company stated that its move to Malta was reached due to its “very progressive [approach] when it comes to crypto and fintech”. Another company Bitbay has also announced its intentions to relocate to Malta after extensive fact-finding on the perfect EU jurisdiction.

The future of money

PM Joseph Muscat has stated that he believes cryptocurrencies are “the inevitable future of money”. Moreover, they will be an integral part of a new economy in the future. In the short term, the move of several established crypto businesses to Malta is set to create hundreds of new jobs. The new set of laws that will be coming into force in due course are set to offer the broadest set of regulations for the industry. The three acts will provide regulatory clarity to brokerages, exchanges, asset managers, and traders amongst others.

 

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.

 

Read More
Posted on

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.

Read More
Posted on

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.

 

Read More
Posted on

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.

 

Read More