A new Regulatory Framework

“Q: Why is Malta creating a new regulatory framework for Innovative Technology Arrangements?

A: Malta has established a new regulatory framework centering around the use of Innovative Technology Arrangements capturing Distributed Ledger Technology (“DLT”) platforms and Blockchain technology, with the primary aim of providing transparency and legal certainty. The legislation aims to instill peace of mind and certainty, as society places more trust in innovative technology. Furthermore, this regulatory framework positions Malta at the forefront of technological business opportunities, as it creates a sound platform for innovators.

Q: What does the new regulatory framework comprise?

A: The new regulatory framework enacted on 4 July 2018 comprises three Acts:

• the Malta Digital Innovation Authority Act (the “MDIA” Act), which oversees the setup of the MDIA as the lead Authority in the innovation technology sector;
• the Innovative Technology Arrangement and Services Act (the “ITAS” Act), which regulates Innovative Technology Arrangements and Services, such as the software and coding used in DLT, smart contract and related applications, together with the technical administration and review services; and
• the Virtual Financial Assets Act (the “VFA” Act), which regulates Initial Virtual Financial Assets Offerings and delineates their licensing requirements.”