Brief introductionOctober 2018
Blockchain & cryptocurrencies have become a hot topic nowadays.
Blockchain is a recent technological phenomenon that relies on crypto-technology. Simply speaking it is a ledger which reflects the ownership of cryptocurrencies.
These technological novelties need a proper legal understanding. As a jurisdiction, Malta has been prompt to react to this technological advancement and the Maltese Government has risen to the challenge by developing legislation that specifically regulates such. Indeed, Malta has become one of the first countries which has elaborated a coherent and comprehensive legal framework on this matter. This legal framework on this subject is composed of 3 laws, namely:
- Malta Digital Innovation Authority Act no. XXXI of 2018 (Chapter 591);
- Innovative Technology Arrangements and Services Act XXXIII of 2018 (Chapter 592);
- Virtual Financial Assets Act XXX of 2018 (Chapter 590)
These laws all together form the so called “Maltese Cryptocurrency legislation”.
Nowadays there are several cryptocurrencies. No need to mention, Bitcoin, frequently referred to as digital gold, is by far the most famous of all cryptocurrencies. Bitcoin Cash, Monero, Litecoin, Dash, Ethereum, Neo are just a few others that enjoy great popularity.
The basis of cryptocurrency is a cryptographic ledger called the Blockchain. It is typically managed by a peer-to-peer network. The network members collectively adhere to a protocol for inter-node communication, thus validating new blocks. Therefore, a central authority or bank is not required for Blockchain to function. Once recorded, the data contained in any given block is not capable of being altered retroactively without altering all subsequent blocks. Hence, the definition ‘Blockchain’.
For further inquiries kindly contact Dr Reuben Balzan.