Understanding Malta’s Leadership on Security Token Regulation

This summer Malta’s parliament gave unanimous approval to legislation that provides crypto sector businesses and investors the regulatory certainty necessary to launch projects related to security tokens.

The legislation consists of three bills. Their provisions constitute the world’s first integrated framework for the regulation of government-sanctioned token offerings

The Malta Digital Innovation Authority (MDIA) Act

The MDIA Act legislates the formation of the Malta Digital Innovation Authority (MDIA) and outlines its mission.

The Innovative Technology Arrangements and Services Act (ITASA)

ITASA is the legal inclusion of Malta’s “technology first” approach into crypto regulation.

Malta is to become the first country in the world to hire blockchain developers to certify the quality and governance mechanisms of the distributed ledger software.

The Virtual Financial Assets Act (VFAA)

The VFAA establishes a regulatory framework to govern entities that work directly or indirectly with virtual financial assets, including security token offerings (STOs) and initial coin offerings (ICOs), exchanges, wallet providers and crypto investment advisors.

On the opportunities the legal framework of Malta provides the companies engaged in tokenisation, read here.