Cryptocurrency enthusiasts have been keeping a close eye on the crypto regulatory proceedings that have been taking place in Malta of late. The European country has shown a positive approach to blockchain and cryptocurrency over the past few months. Even so, not all of its new regulatory guidelines have come into effect as of yet.
Malta’s Regulatory Framework is Changing
Deciding upon a regulatory framework for blockchain and cryptocurrency is only the first step along the road. Although the Maltese government is making some important strides in this regard, putting new rules into effect has proven to be very challenging. Incorporating the three newly introduced legislative bills into the nation’s existing financial ecosystem is still taking time.
All of the bills have passed regulatory hurdles and promise to usher in groundbreaking changes. One of the three laws is not actively being enforced as of yet, although that situation may come to change very soon. A Virtual Financial Assets Framework is still in development, which will help complement the Virtual Finance Assets Act that was passed in June.
This also means that companies looking to be compliant with Maltese laws will have to wait until the new environment is in place. There is no official timeline in this regard, as the MFSA is currently not taking requests for approvals and authorizations under the Virtual Financial Assets Act. Properly establishing this final part of the new guidelines can take anywhere from a few weeks to several months.
Although the implementation of the bills has hit a roadblock, Malta will continue its push to become a major blockchain and cryptocurrency hub in Europe. Its friendly jurisdiction will pave the way for broader adoption of both technologies in the coming years.
Enforcing regulatory change is always a very painstaking process. Malta is one of the few cases where regulators have drafted rules which may prove more difficult to implement due to its positive approach toward blockchain and cryptocurrency. Imposing negative rules is a lot easier, but the Maltese government is intent on taking a pro-active, open-minded approach first and foremost.
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