7th November 2018

Cryptocurrency Regulations in Malta

Cryptocurrency Regulations in Malta

Cryptocurrencies: Not legal tender

Cryptocurrency exchanges: Legal, regulated under the VFA Act

Malta has taken a very progressive approach to cryptocurrencies, positioning itself as a global leader in crypto regulation. While cryptocurrencies are not legal tender in Malta, they are recognized by the government as “a medium of exchange, a unit of account, or a store of value.” To complement existing AML/CTF legislation, the Maltese government was the first to enact a trio of digital assets-related acts (MDIA, ITAS and VFA), along with blockchain legislation. Malta has no specific cryptocurrency tax legislation nor is VAT currently applicable to transactions exchanging fiat currency for crypto.Cryptocurrency exchanges are legal in Malta and in 2018 the Maltese government introduced landmark legislation that defined a new regulatory framework for cryptocurrencies and addressed AML/CFT concerns. The legislation comprised several bills, including the Virtual Financial Assets Act (VFA) which set a global precedent by establishing a regulatory regime applicable to crypto exchanges, ICOs, brokers, wallet providers, advisers, and asset managers.

The VFA regulations (effective November 2018) were accompanied by the Innovative Technology Arrangements and Services Act which established the regime for the future registration and accountability of crypto service providers. The Malta Digital Innovation Authority was also established: the MDIA is the government authority responsible for creating crypto policy, collaborating with other nations and organizations, and enforcing ethical standards for the use of crypto and blockchain technology.

Comply with Cryptocurrency Regulations in Malta Now

Learn More