Blockchain Regulatory Framework in Malta
We live in a fast-changing digital world where brands need to constantly reinvent themselves. Innovation is the only way to stay relevant in today’s business landscape and it’s an essential ingredient of success.
Blockchain technology is a driving force for innovation and its impact on business is undeniable.
Now, blockchain has had its fair share of skeptics in the last few years, and for good reason. But, it has since taken the financial industry by storm. Many businesses are amending their payment structures to accommodate cryptocurrency transactions.
With that said, blockchain technology -like all other industries- requires regulation to ensure fair practices. Here are some of the strides that the Maltese government has taken in the way of blockchain regulations to control this flourishing industry.
Convenience and credibility for cryptocurrency users
The Maltese government has passed 3 bills into law that will regulate blockchain and cryptocurrency. They’ve helped to reduce the stigma attached to blockchain users while ensuring proper industry regulation.
The first bill sets up an authority body that certifies the blockchain platform and all who use it. This is meant to ensure that there are credible users on all platforms. It has also helped to put users at ease knowing that the use of blockchain is not illegal anymore.
The bill will require transparency from new companies and cryptocurrency providers alike. New companies must issue authoritative reports that outline their daily business practices. Meanwhile, currency providers are required to make their entire financial history available to the public.
The second bill is designed to create exchanges for companies that use blockchain as a way to legitimatize the cryptocurrency market. After all, crypto is a legitimate market in its own right.
The presence of an overseer to the blockchain industry will require certain procedures for those who choose to participate in the market.
The third bill is meant to regulate wallet providers and exchanges. This is done through registration and verification procedures that are designed to foster a system of trust within the blockchain community and the government.
Innovation not intervention
Many blockchain users are wary of government intervention on the various cryptocurrency platforms. But, the Maltese government aims to keep innovation at the forefront of these laws. The authority aims to merely be a body that regulates and brings credibility to blockchain and the cryptocurrency market without seizing control and overhauling interactions between users completely.
The bills will be based on the principles of market honesty, protection of blockchain users and the industry as a whole. This will help to ensure that it’s a well-oiled digital machine that keeps growing and improving for the better of all who use it.
Unlike other governments, the Maltese government is taking a different approach by prioritizing innovation and technology instead of only being concerned with the potential financial and economic gains.
Malta has set itself apart as an island embracing the future of blockchain technology. Popular cryptocurrency and blockchain providers are already operating well within the country. With these new bills being passed, legitimacy and regulation has brought credibility to what was once a legally uncertain market and medium of exchange. By legally recognizing blockchain and cryptocurrency Malta is becoming a global leader in a new digital age that is changing how we transact.
It’s worth noting that these bills are the result of rigorous research which the government has made to satisfy the needs of cryptocurrency and blockchain users. The research identifies areas of need and equips users with the necessary tools required to flourish.
Power to the people
Blockchain has the ability to foster a system of trust between ordinary consumers and major stakeholders in the commerce world. It puts power in the public’s hands because informed consumers make better financial decisions.
These bills are the first olive branch extended by the Maltese government to bring recognition and regulation to the cryptocurrency and blockchain atmosphere while still showing the necessary respect and paying dues to those who have found their rainbow in this bubbling pot of gold.
Technology and transparency working hand in hand can finally bring the necessary trust between users and the government.
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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.