MFSA Ensure stakeholders Informed About Law
The Malta Financial Services Authority (MFSA) is currently involved in a consultation exercise. To ensure that all stakeholders are informed on what the three blockchain and crypto laws were dicted recently.
Reports in the local media have interpreted this situation as a stalling on the MFSA’s part. But this is quite a normal procedure.
MFSA Laws Not In Progress Yet
The MFSA has told the blockchain sector to wait because although the laws have been passed. Anyway they are not yet in force. Although the three crypto and blockchain bills were passed into law on Friday 20th July. Consultations with the MFSA are still ongoing for these bills to actually become law. In fact, the MFSA, the Malta Financial Services Authority, said. “That the framework for these laws was still in a creation phase”.
It has been announced, however, that the laws will become effective on 1st. October. MFSA advised the operators to wait for a public announcement from the authority before sending requests for approvals and authorizations. Earlier this month, Maltese MPs passed the Virtual Financial Assets Act. This is one of the three bills which is focused on introducing regulation for the blockchain sector.
The MDIA Act is responsible for the certification and supervision of technology arrangements (which include DLT platforms) and related service providers who apply voluntarily for registration under the Innovative Technology Arrangements and Service Act.
Malta has arguably become the first country in the world to develop a regulatory system which is custom made for blockchain-based businesses. The MFSA is still consulting with various service providers and is expected to publish a Rule Book by the end of the month.
Laws in the government gazette has to wait until regulators have developed a framework underlying the VFA Act. The MFSA, in the meantime, has been busy gathering stakeholder opinions on regulations. These range from exemptions to fees and administrative penalties which are related to the VFA Act. The consultation period ends on Friday 27th July. Once these consultation periods are over, the MFSA will then be issuing final rules and regulations for the VFA Act.