Practice Areas > Investment Services, Fintech & Capital Markets > Blockchain & ICOs > The ITAS Act
Overview
The enactment of the ‘Innovative Technology Arrangement & Services Act’ (the ‘ITAS Act‘) in November 2018 marked Malta’s rise to prominence as a leading blockchain jurisdiction intent on promoting the scalability of distributed ledger technology whilst ensuring a sufficient degree of investor protection and regulatory oversight.
Through its technology-neutral definition of ‘innovative technology arrangement’, ‘innovative technology services’ and ‘distributed ledger technology’, Malta created a future-proof framework for the voluntary certification of innovative technology arrangements and for the attainment of a standardised approach in the certification of other licensable technologies. The ITAS Act also regulates the registration of certain innovative technology service providers, such as Systems Auditors.
A part of Malta’s cutting-edge trident of blockchain laws, the ITAS Act, the Virtual Financial Assets Act (‘VFA Act‘) and the Malta Digital Innovation Authority Act (‘MDIA Act‘) complement each other in the attainment of a comprehensive technology-neutral blockchain regulatory framework.
The ITAS Act
What does the ITAS Act Regulate?
The authority responsible for handling application for certification of innovative technology arrangements and services is the Malta Digital Innovation Authority (the ‘MDIA‘), established under the MDIA Act.
The ITAS Act sets out the framework regulating the following:
- Voluntary Certification of Innovative Technology Arrangements – Innovative Technology Arrangements are defined as ‘software and architectures which are used in designing and delivering distributed ledger technology (‘DLT‘).
- Registration of Systems Auditors – Systems Auditors are auditors of innovative technology arrangements and related smart contracts. Tasked with auditing ITAs, Systems Auditors must, in so doing, follow audit guidelines issued by the Malta Digital Innovation Authority (‘MDIA‘).
- Registration of Technical Administrators – Technical Administrators are persons who carry out specific functions relating to the operation, of the whole or a designed part, of an innovative technology arrangement. Generally, Malta-based ITAs are required to appoint, and have in place at all times, a technical administrator.
- Registration & Processing of Systems Audit Reports – In most cases, an Innovative Technology Arrangement will only be permitted operation in or from within Malta upon the registration of a ‘Systems Audit Report’ drawn by a Systems Auditor in relation to the Innovative Technology Arrangement in question. The ITAS Act sets out the regulatory framework dealing with the registration and processing of such Systems Audit Reports with the MDIA.
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How we can help
Gonzi & Associates, Advcocates, has extensive experience in this field and is able to provide specialised assistance to your business, including:
- Malta Company incorporation and registration
- Assist in the application for registration as Systems Auditor, Technical Administrator and/or Resident Agent
- Drafting of legal opinions on the legal nature of your cyrptocurrency to determine the applicable legal framework
- Collection & preparation of documentation necessary for submission of the applicable licence application
- Advising and assisting in the drafting of a whitepaper or business plan
- Drafting of token offering T&Cs
- Assisting in the engagement of Key Functionaries, including VFA Agent, Systems Auditors, Money Laundering Reporting Officers (MLROs), director/s, auditors, and so on
- Providing post-registration follow-up assistance, including advising on applicable post-licensing obligations.