Malta’s legislative framework, launched in 2018, comprises three laws – the Malta Digital Innovation Act, which sets up a regulatory authority to promote digital innovation, as well as to certify innovative technology arrangements and services. The Innovative Technology Arrangements and Services Act provides for a certification regime for any technology arrangement such as a DLT platform or service by means of the Malta Digital Innovation Authority. This reasoning for this certification is to ensure that any arrangement or service provider wishing to offer added security and peace of mind to users/clients can make use of the provisions offered by the Innovative Technology Arrangement and Services Act.
The third law is the Virtual Financial Assets Act, and it is regulated by Malta’s financial services regulator, the Malta Financial Services Authority (MFSA). The basic approach of this law is to regulate virtual financial assets (VFAs) that do not fall under existent laws. DLT assets that fall under this act are those that are neither virtual tokens nor financial instruments nor electronic money. All such are either unregulated (virtual tokens) or regulated by existent legislation. If a DLT asset does not fall under one of these three categories, then it is considered a VFA for the purposes of this law, and is regulated by this law.