Answer ... The promotion and protection of innovation lie at the heart of Malta’s fintech strategy. In order to promote the sound development of innovative technologies such as distributed ledger technology, Malta has established a new authority, the Malta Digital Innovation Authority (MDIA), whose aim is “to protect and support all users and encourage all types of innovations”. The MDIA will play a crucial role in ensuring that innovation is protected, while safeguarding market integrity and investor protection.

Answer ... As part of its fintech strategy, the Malta Financial Services Authority (MFSA) will be setting up a fintech innovation hub and has also set up a regulatory sandbox to allow operators to test concepts in a controlled environment under its supervision. The MFSA aims to build a holistic ecosystem for fintech to thrive by fostering a strong start-up community and culture, as well as incubators with links to the local financial services ecosystem and the international funding community. The hub will provide various services, including office space, incubation and acceleration spaces, IT infrastructure and shared platforms to build applications and software, and promote innovation and creativity by facilitating networking and connecting participants and industry experts. The MFSA has also proposed the establishment of innovation challenge programmes, which would grant awards to those developing innovative solutions and provide support in various areas, including challenge ideation, programme design, management, assessment and promotion, both locally and internationally. The MFSA is also working on embracing innovation through significant investment in suptech.

The Maltese government has already adopted a pro-business approach which has led some of the biggest names in the industry, including Binance and OKEx, to relocate to Malta. These companies have entered into agreements with the Malta Stock Exchange, which is paving the way towards establishing security token exchanges, further attesting to Malta’s efforts to become the ‘blockchain island’.