Among Blockchain-Friendly Jurisdictions, Malta Stands Out

Among the handful of blockchain-friendly jurisdictions around the globe, Malta stands out with perhaps the most forward-thinking regulatory agenda.

Malta created a legal framework earlier this year which defines DAOs as a new type of legal entity called "Technology Arrangements." Next to the newly passed Technology Arrangement Bill and the Virtual Currencies Bill there will be also a new regulatory body: the Digital Innovation Authority.

Such a legal arrangement has never existed before and thus sparks a lot of open questions.

"The task wasn't just limited to creating an artificial legal personality, we also had to analyse how the technology has come about and predict how it might evolve," said Maltese fintech entrepreneur and blockchain expert Abdalla Kablan who has been advising the government and wrote parts of the legislation.

Beyond the crypto community, the law has some staggering implications for society: A scenario in which autonomous robots can potentially operate as legal personas.

Under the proposed statute, a Maltese DAO incorporated as a Technology Arrangement could, for example, buy real estate in another EU country, just like any other legal person.

Due to an EU treaty, member states are obliged to acknowledge the existence of legal entities or legal personas from other member states.

The Union cannot just wipe out legal personas from its member states.

A model for the EU. Stepping back, the European Union does not currently have a specific legal framework governing blockchain-related activities, but European regulators are inclined to get an EU-wide regulation out.

In conclusion, compared to other countries, Malta has solidly established itself as a blockchain hub.