Maltese parliament passed three important bills back on July 4 this year and by today, when the Malta Blockchain Summit 2018 started, these acts also came to power.
What are these Acts?
- VFAA (Virtual Financial Assets Act)
- ITASA (Innovative Technology Arrangements and Services Act)
- MDIAA (Malta Digital Innovation Authority Act)
These Acts are expected to be the foundations for accountability, transparency, and encouragement of innovative technologies in Malta.
This Act regulates cryptocurrencies and ICOs. Maltese law defines cryptocurrencies as Virtual Financial Assets (VFA) and ICOs as Initial Virtual Financial Asset Offerings (IVFAO). It should be noted that not every blockchain dependent asset can be categorized as a VFA. In order to be classified as the VFA, assets need to qualify in certain areas and only after that, they can be covered with VFAA.
This Act covers smart contracts, blockchain and Decentralized Autonomous Organizations (DAO). It is expected that ITASA will accelerate AI (Artificial Intelligence) and IOT (Internet Of Things) developments.
Systems auditors are obliged to review and ensure the quality of five key concepts regarding any Innovative Technology Arrangements. These are security, process integrity, availability, confidentiality and protection of personal data.
This Act gives Malta Digital Innovation Authority power to oversee ITASAs and give necessary certifications. Authority probes the key concepts of the ITASAs and declares eligibility.
It is clear that Malta is the spearhead in establishing a legal framework for all DLT related technological advancements. Blockchain Island is creating a benchmark for legalization and adoption for other countries.
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