Malta’s enactment of the Virtual Financial Assets (VFA) Act in 2018 marked it as a trailblazer in the space, becoming the first jurisdiction to license crypto operators.
The EU’s own landmark legislative package for the industry, MiCA, which was approved and entered into force in mid-2023, draws extensively from Malta’s framework, ensuring that crypto operators based in Malta require little to no additional adjustments to comply with the bloc’s new rules.
The VFA Act also led to the establishment of the Malta Digital Innovation Authority (MDIA), the world’s first regulatory body focused on blockchain technology, Initial Coin Offerings (ICOs) and virtual currencies. The MDIA is responsible for certifying DLT platforms and smart contracts, and manages the voluntary registration of technology arrangements. It works closely with the MFSA, which licenses and supervises virtual financial assets exchanges, aiming to bring order to a previously unregulated market to ensure consumer protection and market integrity.
As global developments continue to open new fields of commercial potential, the MDIA’s remit has expanded. It now spearheads Malta’s push to establish itself as a centre of excellence in AI. With a mission to support innovation, not stifle it, the MDIA provides guidance to individuals and organisations in their journey to master and utilise these emergent technologies.
