Now that the Blockchain industry has become well-known through its value-added activities in place, the regulatory authorities worldwide have commenced and updated their framework that makes the perspective more practicable and fashionable in the today’s competitive world. As per the valid source, the Malta Chamber of Commerce and Enterprise and Industry in a joint intellectual effort with EMCS executed the informative session about the new buzzword – Blockchain Legislation that was approved by the Maltese Parliament just recently.
While addressing the recent event called ‘Blockchain – The New Regulatory Framework’, according to Malta Chamber of Commerce, Enterprise and Industry’s president – Frank V. Farrugia, “the Blockchain technology has a great potential to create the new foundations for global economic and social systems except than to be a disruptive force for traditional business models”. In short, the blockchain technology can change the dynamics of the business models of the industry by adding most value-added process like, a decentralized platform that makes transaction smoother, transparent and faster.
Additionally, he added that the blockchain system provides corporations worldwide with efficiencies in global supply chains, financial transactions with decentralized social networks in place. He said that it was the right step toward the new development in blockchain industry by genuinely welcoming the recently approved regulatory framework.
When we discuss the strategic profile of Malta, it is one of the first countries to implement regulatory frameworks in order to attract new capital investments likewise how it organized in the past in a variety of sectors like aviation, financial services, gaming, pharmaceutical companies. As per the valid source, Silva Schembri said that “Malta is one of the first world jurisdictions that offers a completely holistic approach to regulate Distributed Ledger Technology”. Based on the conversation of Schembri, we can expect that the upcoming policy framework will definitely attract more investors from around the world thereby creating Malta one of the investment horizon landscape. The world will come to know that how far Malta has reached to be an innovation pioneer!
Besides this, the establishment of the Malta Digital Innovation Authority (MDIA) will focus on innovative technology arrangements and their uses. Initially, the authority will undertake all those tasks that focus on Distributed Ledger Technology and related smart contracts. However, at present, the authority keeps an eye on laws and regulations pertaining to public consultations and collecting feedback regarding the industry. The new technology will impact a variety of industries for sure. According to analysts community in Malta, they see the proposed regulatory framework to ensure to protect investors interest thereby promoting market integrity and safeguarding financial stability.
As per Dr. Sapiano’s comments towards the policy framework, he says that “operators should follow certain ethical requirements pertaining to anti-money laundering transactions among others ethical standards in place”.
In a technical presentation explaining the Virtual Financial Assets Act delivered by Silvan Mifsud – a senior manager at the EMCS advisory services, he explained “how Distributed Ledger Technology assets under the Act with licensing process of ICOs and that of Virtual Financial Assets service providers with the financial instrument test and the anti-money laundering requirements in place”.
Needless to say that the MDIA Act in Malta focuses on guiding principles for the authority in supporting the development of innovative technology. The banks and financial institutions will see the progress in the space of Distributed Ledger Technology as banks are always inclined to utilize innovative technology for their customers and so they may pass the benefits of the technology for their customers according to the Chief Business Development officer at Bank of Valletta, Kenneth Farrugia. And not only that, the Distributed Ledger Technology will offer its solution on a variety of perspectives like operational efficiency through automation, customer experience through cost savings among others benefits in place. However, the banks have to analyze the benefits of the technology from a variety of angels advised by Mr. Farrugia.
In a nutshell, Malta will create a competitive advantage by gaining first mover’s advantage on global perspectives with proper regulations in place, especially for blockchain industry.
Let us not forget that the long-term story for the blockchain industry is so awesome. So be patient and reap the incremental benefits when they accrue!!