The document will be proposing
a framework that conceptualises the creation of a new Authority – Malta Digital
Innovation Authority (MDIA), the voluntary registration of Technology Service
Providers and the certification of Distributed Ledger Technology (DLT)
Platforms and related smart contracts as Technology Arrangements.
The framework
also includes a regime, developed by the MFSA, for the approval of ICOs and the
regulation of certain service providers dealing in Virtual Currencies (VCs)
including brokers, exchanges, wallet providers, asset managers, investment
advisors and market makers.
2. Consultation Questions
Do you agree with the approach outlined hereunder relating to the
proposed framework for Technology Arrangements and Technology Service
Providers?
- The definition of Technology Arrangement subject to
certification by the MDIA in terms of the TAS Bill is restricted to DLT
Platforms and related smart contracts
- DLT Platforms and related smart contracts may, on a
voluntary basis, seek certification by MDIA as a Technology Arrangement. The
DLT Platform may or may not be constituted as a legal entity.
- A Technology Arrangement seeking certification by
MDIA will be required to appoint an Administrator that is registered with the
MDIA. An Administrator that is registered with MDIA and provides administration
services to an MDIA certified Technology Arrangement will be required to ensure
that the ongoing requirements relating to the certification of the Technology
Arrangement are satisfied.
- When processing a request for the certification of
a Technology Arrangement the MDIA will undertake a principles based review of
the characteristics of the proposed Technology Arrangement and may seek
assurances from Auditors of Technology Arrangements (registered with the MDIA)
engaged by the promoter of the proposed Technology Arrangement. These
assurances will be taken into account by the MDIA for the purposes of the
certification of the DLT Platform.
- The Administrator of a Technology Arrangement may
be based in Malta or in another EEA State and may, on a voluntary basis, seek
registration with the MDIA.
- The Auditor of a Technology
Arrangement may be based in Malta or in another EEA State and may, on a
voluntary basis, seek registration with the MDIA.
- The registration of an Administrator or Auditor of
a Technology Arrangement will be subject to a fit and proper assessment by the
MDIA, which will take into account the competence, and integrity of the
proposed Administrator or Auditor.
- Any Technology Arrangements developed by entities
subject to supervision by other NCAs may be subject to certification by MDIA if
the respective NCA considers it desirable or necessary, taking into account the
proposed use of the Technology Arrangement.
3. Documents
Responding to this
Consultation Document
The
Parliamentary Secretary for Financial Services, Digital Economy and Innovation
within the Office of the Prime Minister invites responses to this consultation
document on the establishment of an Authority to be known as the Malta Digital
Innovation Authority and the framework for the certification of Distributed
Ledger Technology Platforms and related service providers.
Please
note that the responses must reach this office by Friday 9th March, 2018.
Who should read this
Consultation Document?
This
document will be of interest to all stakeholders involved in the digital
technology sector including prospective promoters, developers, administrators
and auditors of Distributed Ledger Technology platforms, issuers of ICOs and
brokers, exchanges and other intermediaries dealing in virtual currencies and
similar assets. It is also primarily of interest to other national competent
authorities and regulated entities that make extensive use of Distributed Ledger
Technology in their business.
This
Consultation document is also important for trade associations and industry
bodies.
This Consultation Document should be read in conjunction with the
Discussion Paper on Initial Coin Offerings, Virtual Currencies and related
Service Providers issued by the MFSA on the 30th November 2017.
4. Submission of input
Submissions were sent in through the following channels:
By post: Public Consultation, Parliamentary Secretary for
Financial Services, Digital Economy and Innovation, Auberge de Castille,
Valletta.
Submissions were received by 9 March 2018
We thank you for your input.