Europe is arguably one of the Cryptocurrency markets around the world with the most stringent regulations on the conduct of the trade. The regulation of crypto in Europe is usually hotly discussed.
While other countries are still weighing the possible economic benefits or drawbacks Cryptocurrency trade may have before adopting it fully, Malta is already setting the pace and has gazette new legislation that will most likely catapult Blockchain technology and by extension Cryptocurrency trade into a whole new level in the country.
The government of Malta has presented three new bills that mainly target Cryptocurrencies and the entire conduct of the trade in the country. The three new bills are; Virtual Financial Asset Act (VFA), The Malta Digital Innovation Authority Act and the Innovative Technology Arrangements and Services Act that if passed, will have significant positive impacts on the market.
Based on the analysis by the online news website Hedgeweek, the new regulations by the Maltese authorities will leave out the word Cryptocurrency from the Acts. Many people apparently associate the word cryptocurrency with a lot of negativity that has to cause the market to slacken over time. Virtual Financial Assets will instead be used to refer to Cryptocurrencies and will probably change the mindset most people to have and hopefully convince a few others into investing in the market.
A representative from the legal department Malta Financial Services Authority (MFSA) explained that the recently formulated concept of Virtual Financial Assets (VFA) will come in for any sort of digital assets currently being traded in Malta and that is currently being used for online trade exchanges, a unit of account or simply to store value. This does not include normal virtual currencies such as electronic money, all financial instruments or virtual tokens.
Bills Yet To Be Debated
Even as the cryptocurrency market players across the globe warms up to the good news, it is very crucial to note that the bills have only been issued and are yet to be debated and passed by the Maltese parliament. After the bills are successfully passed, MFSA will issue more detailed guidelines on how everything is expected to play out.
Debunking The Myth
Since inception, cryptocurrency trade has always been judged with a lot of negativity especially from those who have not had their luck with the trade. The move by Maltese Authorities provides a totally new outlook and will definitely change the negative myths surrounding the market. The new regulations are additionally expected to revamp the market by providing a secure business environment where the cryptocurrency industry can thrive thereby becoming more profitable. The legislation is ideally not designed to completely overhaul the market but rather present a new face with no scars and that can inspire trust and ultimately confidence all which play a critical role in online transactions.
Malta will no doubt rise to new levels if these new set of legislation is passed. It has set the pace needed by other countries which are still making deliberations on cryptocurrency and hopefully, even markets with tough guidelines such as Europe will follow in the footsteps.