Malta becomes the leader of the cryptocurrency regatta

The Maltese government has released three cryptocurrency bills - the Virtual Financial Assets Act, the Digital Innovation Governance Act and the Innovative Technologies and Services Act.

To avoid possible negative connotations associated with the word “cryptocurrency,” the laws use the concept of virtual financial assets (VFA): ICOs have become initial offerings of VFAs, crypto exchanges have become VFA exchangers, and crypto services are now defined as VFA services.

The concept of VFA is defined as follows: “any form of digital record that is used as a digital medium of exchange, unit of account, or store of value” that is not “neither electronic money, nor a financial instrument, nor a virtual token.” The use of a virtual token must be limited to “the DLT platform on which it was issued”, and buyback is possible only “on such platforms directly by the issuer of the DLT asset.”

The new legislation sets the framework for conducting and licensing initial VFA offerings, preparing white papers and regulating the activities of service providers, including exchangers and trading platforms. They also outline the rights and responsibilities of investors, as well as the powers of the Malta Financial Services Authority (MFSA) and the Financial Services Commission to ensure the proper conduct of cryptocurrency activity.

“It is important to note that these bills have not yet gone through the parliamentary debate stage scheduled for next week, and the regulations will be introduced by the Malta Financial Services Authority,” said Nicholas Warren, senior manager for financial services at Chetcuti Cauchi Advocates. “However, as the texts of the laws have been published and demonstrated in detail the world's first attempt at legalizing cryptocurrencies, Malta is closer than ever to becoming a global pioneer in cryptocurrency regulation."

According to https://www.hedgeweek.com