Minister for the Economy, European Funds and Lands Silvio Schembri addressed the AIBC summit, an international event for blockchain, AI, and other emerging technologies.
Minister Schembri stressed the importance of having a virtual financial assets regulatory system in place – same as Malta has – in light of the collapse of an international crypto exchange firm.
In 2018, Malta became the world’s first jurisdiction to establish a legal regulatory framework for Virtual Financial Assets (VFA). To protect consumers, the VFA Framework introduced the requirements for crypto exchanges to segregate clients’ assets and carry out regular reconciliations with respect to clients’ holdings. In order to mitigate the risks of failure of a crypto exchange or cyberattacks, safeguards were put in place in the VFA framework. Minister Schembri said that this led to a substantial number of companies which operate within this sector, some of which are key players within the industry, to set up shop and grow their operations from within our shores.
“The recent collapse of an international crypto exchange firm has highlighted the dangers of a completely unregulated crypto market and the dire need for prudential regulation across the globe. So, now, more than ever, we can safely say that Malta was at the vanguard of this digital revolution,” said Minister Schembri.
Both the EU Parliament and the EU Commission have agreed on an EU Regulatory framework (MiCA) which is identical to the Maltese Virtual Financial Assets Act. This effectively means those holding a Maltese licence will be able to operate across the EU through recognised passporting rights while their clients will continue to benefit from a high level of consumer protection, once MiCa is implemented.
As a government, Minister Schembri said that the aim is to ensure that Malta remains at the forefront of the fourth technological revolution by fully embracing digital progress, based on advanced technology which determines the way we live, work, and relate to each other. This shall continue to secure a robust economy for the benefit of all.
“However, as I have reiterated on several occasions during my tenure as Minister, diversification remains key to a healthy economy. It is only through the creation and strengthening of new and innovative niches that we can attract foreign direct investment and sustain our economy’s success,” stated Minister Schembri.
The area of AI remains high on the priority list of the Government, remaining committed to create favourable conditions for a robust AI ecosystem to take root and flourish in a manner which will enable the social and economic benefits the technology can bring forth.
In 2019, Malta launched a vision for Artificial Intelligence in Malta and a strategy to achieve the vision. With a roadmap comprising over 70 concrete actions, the strategy commits to a wide spectrum of inter-sectorial projects that ensures that Malta becomes ever more AI-ready. Malta remains committed towards digitalisation and innovation as core elements of future-proofing our economic strategy.
“As innovation continues to develop at breakneck speed – quantum computing, blockchain, AI, metaverse, we shall, continue to seek ways to progress, grow and to achieve more,” concluded Minister Schembri.
