MB8 Coin, The Journey to Regulation
While countries, governments and companies across the globe realised the benefits of utilizing blockchain technology over older more traditional networking methods, for years they were being trialled behind the scenes with no person or country brave enough to make the first global stance by introducing a regulatory framework that this technology could operate within, until Malta’s Junior Minister of Financial Services, Digital Economy and innovation Silvio Schembri made the move the whole world was waiting for.
July the 4th 2018 marked a historical day for Malta, as the Maltese Parliament officially passed three bills into law, establishing the first regulatory framework for Blockchain, Cryptocurrency and Distributed Ledger Technology.
This makes Malta the first country in the world to provide an official set of regulations for legitimate operators in the Blockchain, Cryptocurrency and Distributed Ledger Technology space and has seen Malta named as The Blockchain Island, this is thanks to the fantastic work of Silvio Schembri
The CEO of Multibuy, Giancarlo Santigli on the right, and Chief Operations Officer of Blockchain Scotland, Chris Stewart on the left. Were accepted to attend a meeting in Parliament with Silvio Schembri, who is seen here in the centre, where they were informed their project MB8 Coin would likely classify as a utility token and would be suitable for a regulatory submission under the new legal bill, once Malta’s Digital Innovation Authority was formed.
During July 2018 both Multibuy and Blockchain Scotland started working with a recommended Legal Team to receive guidance on the requirements to become regulated.
At this time it was thought that applications would be able to be submitted during October 2018 and as such MB8 Coin previously extended the ICO to November 2018 to allow regulation to be in place during the ICO.
While most jurisdictions are looking at what is written in the white paper, the newly formed MDIA looks closely at the technology behind the white paper to ensure it is adequate and will deliver what is stated.
During August and September 2018, the MB8 Coin team received guidance on specific requirements that would be needed in the Whitepaper and Technical Document and made necessary changes to their application could be submitted at the earliest possible opportunity.
The core MB8 coin team also took the time to highlight where information that will be required is located in the public documents to allow for a much more streamlined and seamless application evaluation
The MB8 Coin team arranged a meeting with our legal representation during the Delta Summit, where they were hopeful of receiving confirmation that the initial timeline provided by parliament was still on track, however Lawrence the CEO of Alpine Group advised that Each week for the last few months since Parliament signed off the three legal bills, compliance documents have been issued to legal professionals for review. After receiving these documents, lawyers had one week in which to correspond with any feedback or alterations that may further strengthen the regulatory framework for distributed ledger technology. Although the newly set up MDIA (Malta’s Digital Innovation Authority) did not expect a requirement for change, they have been very careful to continually seek collective feedback from the highest calibre of legal professionals (Such as Alpine Group) to ensure that this new regulatory framework is impenetrable from the outset. This process has been worthwhile, however, in turn, this has caused delays on the estimated initial timeframes.
It is now confirmed that the Lawyers can submit their application to be VFA (Virtual Financial Asset) agent from the start of November. Before any legal firm can submit an ICO to be regulated, they must first be a VFA agent, as such MB8 Coin will not be able to submit their application until after this step is complete.
We then asked well what are our options moving forward as our ICO is due to end on the 5th of November?
Lawrence advised, should you still want to proceed with ending your ICO on this date you will be able to state that you are operating within a regulated jurisdiction however you could not state that you comply with the regulated framework.
We then asked what will be better for the community that has purchased MB8 Coin?
Lawrence’s response was,
If you extend your ICO it will be better for all involved as it will allow us time to submit your application to the MDIA, the MDIA will then have the opportunity to confirm that everything stated in your whitepaper is accurate, they will also go over the technical paper and confirm that the technical aspects of the network you are building to run the utility token are fit for purpose. Once they have done these checks and confirmed MB8 Coin complies as a utility token, the MDIA will submit a report to confirm compliance with the MFSA (Malta’s Financial Services Authority). Should the MB8 Coin Blockchain be required to make any alterations, you may have an opportunity to do this before the MB8 Coin Blockchain goes live.
What would be the benefits to the MB8 Coin community if we extended the ICO?
Malta’s newly formed Digital Innovation Authority will certify that the MB8 Coin’s purpose-built technology delivers exactly what it has specified it will. This may allow any potential flaws to be rectified before MB8 Coin goes live.
Regulated Exchanges that will now be based from Malta and should soon be licenced, such as Binance and OkCoin, will only accept Regulated ICOs are moving forward, making this an essential regulation criteria for MB8 Coin being listed on such exchanges.
Therefore, It will be better for all involved if MB8 Coin extends the ICO until regulated which is forecast to be within the first Quarter of 2019 or before.
We have concluded based on the guidance given from our recommended Legal Advisors, that an ICO Extension is essential to confirm that the Technology is fit for purpose and compliant with the new regulatory framework, as well as being a mandatory requirement to be listed on the Worlds Leading Exchanges that are soon to be Licenced under the same regulatory framework.
As we have stated from the beginning, MB8 Coin will always act in the best interests of the majority of the MB8 Coin community.
Should you have any further questions surrounding the extension of the ICO, please contact firstname.lastname@example.org