Posted on

Malta Says Crypto Rules Aren't Yet In Force

Malta’s new cryptocurrency regulatory framework has not taken effect just yet.

Three bills regarding cryptocurrencies, blockchain and distributed ledger technology, passed by Maltese Members of Parliament in June, set out a number of ambitious changes to the country’s legal landscape overseeing cryptocurrency-related businesses. However, the Malta Financial Services Authority said Friday that one of these laws is “not yet in force.”

The government is currently developing the “Virtual Financial Assets Framework,” which will complement “The Virtual Financial Assets Act,” according to the announcement.

Until such a time as this framework is complete, the MFSA is not yet in a position “to start receiving request for approvals and authorizations under the Act.”

Nor is it clear when the framework will take effect. The announcement notes that the bill will not take effect until “such date as the Minister for Digital Economy may establish by notice in the Government Gazette.”

That being said, Malta, dubbed the “Blockchain Island,” has been hailed as one of the world’s most friendliest jurisdictions for cryptocurrencies attracting major crypto businesses such as Binance and OKEx.

In fact, it was reported this month that Binance, a major cryptocurrency exchange, would partner in efforts to launch the first Malta-based “decentralized and community-owned bank” dubbed the Founders Bank.

Malta flag via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Posted on

SEC Official: ICO Market Shows Need for Securities Regulation

The initial coin offering (ICO) ecosystem is what the wider securities marketplace would look like without regulation, a Securities and Exchange Commission (SEC) commissioner said Monday.

Speaking to CNBC, commissioner Robert Jackson made the comparison when talking about the agency’s role in regulating cryptocurrencies and ICO-derived tokens – and the prospect of tighter controls in the market.

“If you want to know what our markets would look like with no securities regulation, what it would look like if the SEC didn’t do its job? The answer is the ICO market,” he told the network.

Jackson notably remarked that “what I’ll say about bitcoin, in general, is that space has been full of troubling developments,” going on to say:

“Investors are having a hard time telling the difference between investments and fraud.”

Like SEC chairman Jay Clayton, Jackson said he has not yet seen an ICO token which does not look like a security.

Later in the interview, Jackson said that while the SEC is largely limiting itself to seeking enforcement actions against illegal activities in the market at present, the agency might step up its regulation of the space more broadly in the future.

“We are right now focused on protecting investors who are getting hurt in this market and down the road, we will be thinking about, I think we should be thinking about ways to make those investments work with our securities laws,” he said.

Robert Jackson image via YouTube

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.