Malta will maintain vision of building a cryptocurrency and Blockchain friendly ecosystem
Governments from different countries have embraced Blockchain and cryptocurrencies, albeit not to the same extent. There are countries like India, China, and other East Asian countries that have banned cryptocurrency. But other countries follow more liberal policies like Singapore, Japan, Luxembourg, Malta, and Switzerland.
Malta has been endeavoring to turn into a Blockchain shelter, to use the innovation and to pull in organizations working in the space (Image via Allblockchaincrypto)
Malta – Paradise of cryptocurrency and Blockchain
The Swiss Zug region is called the ‘cryptocurrency valley’ because large cryptocurrency-related companies are offered shelter in the area. However, among all these countries, Malta stands out the most. It has even evolved into a European “Blockchain center.” Because, in Malta, there are many favorable conditions for the cryptocurrency industry. This also helps Blockchain technology grow exponentially in the region.
Over the years, Malta has consistently achieved many titles such as ‘cryptocurrency paradise on earth,’ ‘Blockchain Island,’ ‘Blockchain center’ due to the free cryptocurrency regime and Blockchain mode. Recently, Malta has become the first jurisdiction to apply Blockchain regulations. This makes significant cryptocurrency exchanges like Binance, OKEx, and ZBX start operating here.
The Government of Malta has been involved in renewing the jurisdiction to allow Blockchain and cryptocurrency to grow there. This is something that other countries continuously suspect. In July 2018, the Malta government approved the enactment of three bills that will facilitate the adjustment of the legal framework for Blockchain, cryptocurrency, and Distributed Ledger Technology (DLT).
The three laws include:
- Malta Digital Innovation Agency Act: Establishing the Malta Digital Innovation Agency to certify the DLT platform, primarily focusing on internal governance arrangements.
- Innovative Technology Agreement and Service Law: Related to DLT certification and regulations.
- The Virtual Financial Asset Act: Provides a legal framework for controlling ICOs, exchanging cryptocurrencies,…
The tax rate for corporations in Malta is the lowest among all EU countries (only 5% compared to 22%, which is the average), which further boosts the cryptocurrency industry. In most other countries, cryptocurrencies do not have proper or completely banned regulations. But in Malta, this is the spot that everyone loves.
Malta has emerged as a leader in this area primarily because of the “top-down approach”
Recently in September, the Malta Financial Services Authority (MFSA) revealed the ‘Strategic Plan 2019-21’. This is a crucial document focusing on the role of the Malta Digital Innovation Agency (MDIA) in promoting the development of the cryptocurrency industry in the region. There are several legal challenges to the industry today, which MFSA will try to solve through the ‘Sup Tech’ intelligence tool.
The report stated:
“The intelligence tool will help regulators detect fraud and apply anti-money laundering measures. And this time it will help the government to keep checking cryptocurrency service providers legally licensed.”
The Prime Minister of Malta, Joseph Muscat, said:
“The concept of cryptocurrencies makes me happy when it strikes at the core of the main philosophical elements taught by economic students at the start of their lecture. avoid money.”
Joseph Muscat, the Prime Minister of Malta
Therefore, Malta, like many other countries, intends to maintain its vision to build a Blockchain-friendly and Blockchain-friendly ecosystem on the island with a relatively open regulatory policy.
Malta has emerged as a leader in this area primarily because of the ‘top-down approach,’ and the prime minister’s vision has spurred the formation of a new cryptocurrency-based economy with a legal framework that requires cryptocurrency exchange, brokerage, asset management, traders, … and provides legal assurance.
The cryptocurrency community in this country is quite optimistic about the future of Blockchain, with some significant projects coming soon like token exchange projects decentralized by OKEx and Malta Stock Exchange.
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