[2018-02-19] Malta to Give “Peace of Mind” to Crypto Companies

[FollowSynergy]

The government of Malta has come up with an idea that businesses dealing with cryptocurrencies may find interesting. A new policy document seeks to set up a special agency which will “certify” blockchain platforms and “verify” crypto transactions. It is supposed to “bring peace of mind” to companies using these technologies to cut out central authorities and banks. Valletta also proposes legislation that will define the roles of intermediaries and regulate initial coin offerings.

Government Will Provide “Legal Certainty and Trust”

The new Malta Digital Innovation Authority will certify blockchain platforms used by companies in the country. It will also be responsible for “verifying” cryptocurrency transactions by checking if the logged information is genuine. The government hopes to bring some peace of mind to businesses using distributed ledgers for cross-border payments.

Authorities in Valletta are recognizing that companies utilize blockchains to cut out central authorities. However, they acknowledge that the technology allows for cheaper and more efficient money transfers. Worried that those platforms are not currently certified in any way, the government has decided to provide some “legal certainty and trust”. Officials believe companies will benefit from the work of the new authority, while also cutting out intermediaries such as banks.

The Parliamentary Secretary for the Digital Economy Silvio Schembri presented the new policy document at a press conference with various stakeholders, the Maltese Independent reported. He called the event a “historic moment” and provided further details on how authorities plan to implement regulations concerning the cryptocurrency sector in successive stages.

The first step will be to set up the Malta Digital Innovation Authority. A bill will set out the regime for the registration of service providers and the certification of technology arrangements, Schembri explained. On stage 2, another draft will formalize the framework for Initial Coin Offerings (ICOs). A third law will impose regulation on services directly related to cryptocurrencies. Intermediaries like brokers, exchanges, wallet providers, asset managers, and investment advisors will be subjected to its provisions.

Full article: https://news.bitcoin.com/malta-give-peace-mind-crypto-companies/

[Carlton Banks]

How dumb are these people, lol

The blockchain was designed to verify transactions itself, you don't need anyone to do it except yourself. Established authorities and institutions are clearly terrified; no-one needs accountants, clearing houses or lawyers in a blockchain based world.

[BitHodler]

How dumb are these people, lol

The blockchain was designed to verify transactions itself, you don't need anyone to do it except yourself. Established authorities and institutions are clearly terrified; no-one needs accountants, clearing houses or lawyers in a blockchain based world.

It mainly comes down to the fact that they themselves as central authority want to have the control over the process of verifying transactions and whatnot. Centralized blockchains will be their way of moving forward.

It was pretty much a predictable event even years ago. Everything related to the system we're in is based on the government to function as central authority, and in this case they will keep that strong position.

The only positive aspect of this is that it will very likely translate into a wider field of crypto friendliness overall. Let them have their centralized blockchains, we are safe and sound with Bitcoin.  

[jjacob]

Government Will Provide “Legal Certainty and Trust”

Ha ha. It is to avoid the 'trust' that people have to place in banks and governments that cryptocurrencies were developed. Why should you trust anybody in a decentralized world?
It will be interesting to see what happens when a government-certified' exchange gets hacked. I would love to see the composition of the Malta Digital Innovation Authority. Would the regulators accept some liability for anything untoward happening at certified companies?

[CryptoBry]

There is no question that no matter how we proclaim that cryptocurrency must be independent of the government and that we don't the government in the whole process, the reality is that any government can ban the trading of cryptocurrency and can push out any business conducting on this sphere. This is where regulations comes in practically because we could never eradicate the government and its desire to have some kind of control and of course to extract some form of tax in every transaction made.

This is the reality bite that we have no choice but to face. Under this kind of scenario, we have no choice but to welcome initiative from the government to recognize cryptocurrency and make things easy for anyone involved in this industry. The idea is that having regulations can be so much better than what China did and is doing for cryptocurrency.

Not that we should be thanking the government but I guess cooperating can be more advantageous in the long run instead of fighting the power of the state. Again, we have no choice but to accept reality. This development in Malta can in fact be a good news...at least compared to countries which made things of cryptocurrency illegal.

[Carlton Banks]

There is no question that no matter how we proclaim that cryptocurrency must be independent of the government and that we don't the government in the whole process, the reality is that any government can ban the trading of cryptocurrency and can push out any business conducting on this sphere

Except various governments have tried this, and they failed. In the case of Venezuela, the government failed so badly (despite raiding miners), that instead they "legalised" cryptocurrency and tried to place themselves at the centre of the Venezuelan people's positive attitudes towards cryptocurrency (by launching a centralised coin, lol)

Not that we should be thanking the government but I guess cooperating can be more advantageous in the long run instead of fighting the power of the state. Again, we have no choice but to accept reality.

Venezuelans fought. They won. You appear to be the one struggling to accept reality. Others will benefit from this democratic change, and you will be remembered as someone who didn't have the courage to stand up for your rights.