Malta’s financial regulator promotes cryptocurrency investment rulemaking

nRunaway Commentary: The Malta Financial Services Authority has since started actively developing a series of rules for cryptocurrency investment funds and solicited feedback from the public to better align regulatory measures with popular opinion. The agency has posted these feedbacks and said the rules manual has been revised on the basis of that. Although the entire set of rules has not been completed, people have learned some details, such as the eligibility of investors.n
nTranslation: Inan
The Malta Financial Services Authority (MFSA) announced on Monday the feedback received on the proposed rules for its collective cryptocurrency investment plan.n
MFSA first sought feedback in October last year on its proposed rules manual in the hope of managing a Professional Investors Fund (PIF) focused on cryptocurrencies. From the document’s point of view, the proposal has dramatically changed the structure, moving from an independent rules manual to an addition to existing investor rules based on industry commentary.n
According to the agency, the reason for such a change is that many of the feedbacks received by the MFSA call for such a shift.n
Although the final version of these rules is not yet published, MFSA made it clear that the existing rule proposal has been updated based on industry feedback and will allow people to invest in cryptocurrencies and tokens issued through the ICO.n
The agency also tried to explain under what conditions these investment funds can be regarded as financial instruments, the document wrote:n
n”In addition, in its discussion paper, the Authority proposed that financial instruments be tested in accordance with the general principles of the ESMA policy statement to determine under what circumstances a VC may be classified as a financial instrument.”n
nDespite the contrary feedback, MFSA decided to allow only qualifying investors to invest in cryptocurrency-based funds, meaning that only those investors that meet the minimum investment requirements, such as a net worth of at least € 750,000, will be able to participate in such activities.n
According to the agency, the entire set of rules is still under preparation and will be announced on further review.n

Recent Developments in the National Chain Chain Strategy in Malta: Establishment of the Chain Chain Advisory Committee

nnIn the development of the chain chain, Malta has set up an advisory committee, bringing together experts to provide advice on its national block chain strategy. The Maltese government and national leaders have expressed support for this emerging technology, which will provide a great deal for the development of the technology in Malta, which will help the country achieve its digital economy.n
nTranslated by: Inan
The Maltese government is setting up a new special group to advise its implementation of the national block chain strategy, which was announced in April.n
According to the Malta Independent, the group will review the proposal and make recommendations to portray a roadmap to facilitate the application of block chains in public sector processes and services.n
Vincent Muscat, Permanent Secretary of the Secretariat of the Maltese Parliament, will serve as Chairman of the Advisory Committee. Other members include senior financial technology / block chain consultant at Quantum Financial Analytics Steve Tendon; Ian Gauci, a legal expert specializing in communications and technology; Joseph Cuschieri, Executive Director of the Malta Gaming Authority, and Loui Mercieca, a software architect with block chain expertise Then
The group announced on Friday that the group called on seven financial services consultants to make recommendations for the block chain strategy, whose ultimate goal is to help countries achieve the digital economy.n
Press releasen
n”The government is ambitious in researching new regulatory functions whose main goal is to use the technology through a legal framework that will create an ideal ecosystem for people who are willing to invest in chain-chain technology.”n
nThe announcement, therefore, marks the latest block-chain initiative in the Mediterranean region of Malta, which has been promoting its domestic block-chain technology.n
For example, in December last year, the country’s stock exchange began to study the use of block chain to support its platform, and Maltese Prime Minister Joseph Muscat also expressed support for the block chain and encrypted currency.n
He also told some EU leaders that the encrypted currency could not be halted and that he had become one of the few leaders in the world to recognize the emerging technology.n

Malta government: “Our next step is the block chain”

nnnThe Malta economy relies heavily on gaming and financial services, attracting foreign companies, entrepreneurs and individuals with a tax system. Malta is now using the leading technology, such as block chain, to train technical personnel, through the technical force to maintain the momentum of development of these industries.n
nnTranslation: Annie_Xun
nOne of the smallest countries in Europe, Keith Abela, Malta’s financial services, digital economy and innovation secretariat, describes Malta’s financial and online gaming industry, attempts to take advantage of domestic and international talent, and how to use emerging block technology to stay in these industries The leading position.n
nHow does the banking economy of Malta withstand the eurozone crisis and how to protect the country from the future of the global financial crisis?n
nWe are fortunate that our banking institutions are not exposed to the subprime crisis as many other banks in the European Union, either directly or indirectly. Most local banks, as opposed to other EU member states, are relatively conservative in local banks in favor of our crisis.n
nMost of our public debt is long-term, and is local, so we have not encountered liquidity problems. Since then, we have continued to strengthen our banking and financial systems with our European partners through regulatory and prudent norms. Over the past four years, the government has been hoping to diversify its economy, such as by attracting private investment in the medical and educational sectors.n
nHow does the government attract gambling companies to ensure that these companies are left with further measures?n
nThe main industry in Malta is now different from that of a decade ago. Has made major use of attractive tax systems, and Malta has benefited from the world’s most complete domestic ecosystem. Now the industry’s companies benefit from the strong support of talent pool and supporting measures.n
nWe are now actively exploring the use of encrypted money in these industries, and we believe that will bring rapid and cost-effective alternatives to traditional payment mechanisms. The Malta Gaming Authority (MGA), Malta’s gaming industry, has been upgraded to provide professional support services for online gaming companies that want to set up a company in Malta and develop new business.n
nMalta should also be among other science and technology in the field of leading position?n
nAs a country, we have a new historical record of strong adaptability. We reshape the field of financial services and remain attractive, while following the norms of the European Union and the OECD. Recently, companies in the field of Malta insurance and securities and alternative investment funds have developed.n
nWe believe that the next step is to take full advantage of the block chain technology. Our vision is to provide the best legal framework for Malta to become the leading country for attracting block chain technology companies. Not only for the development of technology to facilitate, but also actively advocate.n
nHow can countries better ensure that more young people enter the field of science and technology in Malta?n
nAs a country, there is no resource advantage in the country, training young people is the foundation. The government supports the University of Malta and other institutions to focus on future needs and interact closely with the industry. To this end, set up ICT, financial services, pharmaceutical industry and online gaming and other university courses.n
nAlthough this approach has had a good effect on the economy, we need to form a culture that encourages early participation in innovation. We must continue to attract the right people to showcase Malta’s business areas to companies, entrepreneurs and employees. Malta is a member of the European Union, close ties with Europe, strong financial services industry, continuous economic growth for many years, good weather throughout the year, is considered the best place to work and live.n
nWill it make legislative adjustments?n
nMalta’s two major industries are financial services and online gaming. After years of upgrading, despite the cost structure that has focused on competitive advantage, it now benefits from the complete infrastructure and is well suited to domestic demand. For example, the software field has begun to support the online gaming industry. We need to continually assess the opportunities and threats of the industry and seek a visionary repositioning.n
nWith regard to legislation, we have recently issued two letters, one for online gambling, with the aim of further simplifying the regulation and narrowing the distance between existing technology and existing regulation. The regulation of gambling services under the new regulations will be more broad and clear, that is, all activities that belong to the MGA jurisdiction should follow the licensing requirements.n
nAnother document is to strengthen the Malta Financial Services Authority (Malta Financial Services Authority), so that the agency from the shareholders get feedback, so that institutions are more adaptable to changing the environment.n

Malta accelerates the release of Bitcoin

nnnThe Malta Gaming Authority (MGA) has recently publicly stated that it plans to legitimize and regulate the use of digital currency such as Bitcoin in its gaming industry and will encourage effective management and enforcement while encouraging its use. The move also represents Malta’s desire to learn more about digital money and block-chain technology to maintain its competitive advantage and to seize the opportunity in technological innovation.n
nnTranslated by: Inan
nMalta has been a pioneer in Internet gambling and is rapidly advancing the plan to allow online casinos to legally use Bitcoin and other digital currencies.n
nJoseph Cuschieri, executive director of the Malta Gaming Authority (MGA), which oversees the country’s entity and online casino, said in an interview that the agency has begun detailed technical research to explore the best of legitimate and regulated digital currencies in the gaming industry How to use it.n
n”We believe that digital money and block chain technology are emerging innovations that need to be analyzed and evaluated for their potential risks and opportunities in the gaming sector,” he said.n
nCuschieri told CoinDesk:n
nn”We will publish the form of a digital money management framework after the risk assessment, and the MGA will show its position after announcing the results of the study and announce how to use the digital currency.”n
nnThe agency is expected to announce details of the findings in the fourth quarter of 2017.n
nPlan onen
nJust before Cuschieri commented, the MGA had just released a white paper that showed that the legal supervision of its online gambling had to keep up with the pace of technology to achieve development.n
nOne of the conclusions of the report is that in order to maintain a competitive advantage, digital money should be accepted because the wider use and application of these technologies is inevitable.n
nThe report says:n
nn”The Authority recognizes that the rise of digital money is unavoidable and is aware of the need to remain at the forefront of innovation and to keep up with the new developments in technology and industry … The Authority is committed to allowing its licensees to use figures in the near future currency.”n
nnThe promotion of legal and normative digital money betting is only part of the Maltese government’s broader plan to develop a chain chain strategy and at the forefront of technology applications.n
nWhen the initial strategy was first announced in April, Prime Minister Joseph Muscat said:n
nn”In hugging key innovations, we have to go ahead, we can not wait for someone else to take action and copy their practices, and we’re going to be the object of imitation.”n
nnMalvio Schembri, Malta’s Minister of Digital Economy, told the local media this week that Malta is committed to introducing distributed book technology throughout the public sector and attracting block chain companies.n
nHe said:n
nn”We’ve heard a lot of chunks of chains, and now it’s time to put words into action, create new opportunities for citizens and the economy, and turning this vision into reality is my top priority.”n
nNeed to prevent fraudn
nHowever, the development of regulatory frameworks for rapidly evolving technologies requires a careful study of the effects of consumer protection and anti-money laundering and competitive pressures from other jurisdictions.n
nBitmalta is a local digital money advocate organization, praised the MGA initiative, but called on the agency to take prompt action to keep up with other countries to seek the pace of legalization of digital money.n
nThe organization said in a statement:n
nn”Other jurisdictions, such as the United Kingdom, have legislated to allow remote gamers to use digital money, unless they are willing to take up the technology.”n
nnCuschieri insists that while a key goal is to attract new operators and investments, it does not mean that he will welcome everyone.n
nHe said:n
nn”Our first priority is always the rule of law, and Malta does not welcome any country that does not meet our standards of correctness, regulation, anti-money laundering and consumer protection.”n
nExposed to the sunn
nSince the emergence of block-chain technology 10 years ago, Bitcoin and digital money casinos have been one of its main applications, but many of these entities operate in unregulated or underweight controls, raising concerns about lawless elements Use digital currency.n
nCuschieri argues that the most direct way to stop an illegal act is to expose the casino to the sun.n
nHe said:n
nn”We firmly believe that sound and effective regulation and enforcement is the best way to control gambling, prevent crime and protect players.”n
n”Prohibition or obstruction will only lead to underground activities and the black market behavior, which does not involve the best interests of participants and industry, it is best to establish a transparent regulatory system for the system to increase integrity and trust.n