PRESS RELEASE BY THE PARLIAMENTARY SECRETARIAT FOR FINANCIAL SERVICES, DIGITAL ECONOMY AND INNOVATION: Great interest shown in the proposed regulatory framework on DLT

Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri expressed his satisfaction at the great interest shown in the proposed regulatory framework on DLT.

While addressing the conference entitled ‘Reflections on the proposed DLT framework’, organised by the Blockchain Malta Association, Parliamentary Secretary Schembri explained that the proposed framework conceptualises the creation of a Malta Digital Technology Authority, the voluntary registration of Technology Service Providers and related smart contracts as Technology Arrangements. The framework also includes a regime, developed by the MFSA, for ICOs and service providers dealing in VCs.

The proposed framework will offer legal certainty to a space that is currently unregulated, he stated. The Parliamentary Secretary went on to say that while other jurisdictions have published their views on how to regulate cryptocurrencies and ICOs, none of them have extended their framework to cover such an extended space as the one Malta put forward. Schembri noted that while the European Commission is still observing this sector, Malta decided to lead and thus, the framework will serve as a blueprint for other countries.

Parliamentary Secretary Silvio Schembri said that the framework up for consultation aims to address a central gap in this sector, and provide legal certainty while ensuring that regulation does not hinder innovation. Schembri encouraged everyone to come forward with their suggestions to strengthen the regulatory framework.

Source: Government of Malta