Malta’s iGaming Operators To Benefit From Blockchain Regulation Bills
The Maltese Parliament recently approved the proposed blockchain regulation bills which will now govern the cryptocurrency industry on the island.
This is an important decision for Malta’s online gambling industry since the island also happens to be the hub for a lot of iGaming and crypto businesses.
This latest move makes Malta a pioneer in implementing a regulatory framework for cryptocurrencies on a national level.
Malta has been a haven for online gambling companies as its low tax rates and forgiving policies have made turned it into the online gambling hub of Europe. Many gambling startups choose Malta as the place to begin their operations and the regulatory framework and tax laws give them a much better shot at success. The iGaming industry was one of the first industries to embrace cryptocurrencies but not all iGaming operators were willing to add crypto payments to their list of payment methods due to lack of regulation surrounding the industry.
These concerns have been dealt with Malta’s new blockchain regulation bill. These new crypto regulations make it a lot safer for cryptocurrencies to be integrated into the online gambling experience and will also help boost the island’s attractiveness to crypto-based business.
Early in the year Silvio Schembri, Malta's Financial Parliamentary Secretary boasted that the small country would soon be the first to have its own blockchain legislation. With solid regulation in place, crypto-businesses will have a lot more peace of mind as they start their operations in Malta. Those promises have now been fulfilled and crypto businesses and iGaming operators will now want to take full advantage of a regulate industry.
What Are The New Blockchain Regulations?
The new regulations are broken down into three separate acts. They are the Innovative Technological Arrangement and Services Act, the Malta Digital Innovation Authority Act and the Virtual Financial Asset Act.
The Digital Innovation Authority act (MDIA) sets up a new regulatory body that will ensure that the new cryptocurrency sector has proper oversight and that nothing illegal goes on. It will primarily act as a watchdog on crypto exchanges and businesses and to help attract more of them to come to the island.
The Innovative Technological Arrangement Services Act (ITAS), on the other hand is aimed at helping service providers get themselves properly licensed. Proper licensing ensures that a business is accredited and gets audited regularly to ensure it is operating legally. A certificate for Distributed Ledger Technology platform management will also be issued to all auditors and administrators to prove their legality.
Finally, the Virtual Financial Asset Act (VFA) ensures that initial coin offerings (ICOs) will be properly regulated. ICOs are notorious for being untrustworthy and having a proper framework for implementing them ensures that no illegal activities will take place. The act will also help deal with potential money laundering and security issues.