Malta can be a ‘good and trusted’ jurisdiction for NFTs, Silvio Schembri says

Economy Minister Silvio Schembri has said that Malta can place itself as a well-known jurisdiction with a good and trusted reputation for the economic sector of non-fungible tokens (NFTs). 

Schembri was replying to a Parliamentary Question asked by PN MP and finance spokesperson Jerome Caruana Cilia. 

Caruana Cilia asked Schembri what the government’s position on NFTs is and asked whether the Economy Minister sees any potential for them in Malta’s economy. 

Schembri said that NFTs offer “interesting opportunities” for digital innovation particularly in the facilitation of ownership, usage rights, and possession of digital certificates for digital or physical assets. 

There are, he said, however a number of challenges when it comes to ownership, licensing, taxation and even under which law they fall under – with the Minister citing the VFA Act or laws which fall under the jurisdiction of the Malta Financial Services Authority (MFSA) as two examples. 

Schembri said that the Malta Digital Innovation Authority (MDIA) has drawn up regulations which give assurances for technology built on smart contracts and blockchain and which help increase the public faith in these technologies, help improve the country’s reputation in commercial activities, and protect society as a whole. 

The regulatory framework supports comprehensive systems audiots and a more flexibile regime through a regulatory sandbox, Schembri said.  He said that no other country has a national framework for technology assurance. 

“Malta can place itself as a well-known jurisdiction with a good and trust reputation for NFTs,” Schembri said.