Distributed Ledger Technology: Three acts published

On 20 July 2018, following the final seal of approval from the President of Malta, the Government of Malta published the eagerly anticipated three new legislative acts set to regulate Distributed Ledger Technology (‘DLT’), more commonly known as ‘blockchain technology’, as Malta seeks to establish itself as a frontrunner in blockchain technology. These three acts encompass:

1. Act XXX of 2018 – the Virtual Financial Assets Act (the ‘VFA Act’), which is set to regulate the field of Initial Virtual Financial Asset Offerings and Virtual Financial Assets (such as Initial Coin Offerings) as well as intermediaries and service providers looking to operate within this space. The VFA Act, inter alia, establishes requirements for the publication of, and the contents to be provided within, a whitepaper by VFA issuers as well as licencing and registration requirements arising to VFA service providers and VFA agents respectively;
2. Act XXXI of 2018 – the Malta Digital Innovation Authority Act (the ‘MDIA Act’), which provides for the establishment of a new authority to support the development and implementation of guiding principles for the development of ideas, skills and other qualities related to DLT; and
3. Act XXXIII of 2018 – the Innovative Technology Arrangements and Services Act (the ‘ITAS Act’), providing for persons seeking to provide Innovate Technology Arrangements, as laid out within the ITAS Act, to apply to the Malta Digital Innovation Authority, on a voluntary basis, for recognition of systems and procedures underlying their service offerings.

The above acts will come into force on such date as the Minister for Digital Economy may establish by notice in the Government Gazette.

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