The innovative legislative framework in respect of virtual financial assets is definitely leaving its impact on Malta. This is not only in terms of Islamic initial coin offerings but also in terms of service providers applying for licenses. Indeed, the Malta Islamic Finance Association has been approached in order to facilitate discussions and prepare all the necessary documentation for two Islamic crypto exchanges as soon as the licensing process for virtual financial assets service providers is opened by the Malta Financial Services Authority. As expected, this has put the spotlight on Malta and more Islamic fintech companies are enquiring on the opportunities in Malta.
The latest project on blockchain which is considering registering in Malta relates to financing of agricultural projects using the Murabahah and Qard Hasan contracts. The methodology used is certainly an innovation in Islamic finance and is expected to be the subject of debate between various Shariah scholars. More details regarding this project are expected by June 2019, and by the third quarter of the year the project may have its soft launch.
The Malta Financial Services Authority has in the meantime launched a number of consultation documents to launch new legislation in its proactive approach to new legislation. Stakeholders are invited to put forward their suggestions. This is even more so when it comes to Islamic fintech. I do encourage entities that have ideas in this respect to contact me so I may forward such recommendations to the authority.
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