The Development Of Blockchain & Crypto In Malta

Blockchain is one of those things where you either love it or you hate it. It has divided many opinions from many authorities around the world. If you’re reading this article, you are probably a fan of blockchain but in places like China, they oppress the industry and are even trying to ban coins. But then places like Malta are paving the way for blockchain business, are giving a inch of hope to an emerging industry.

As reported by the Daily Hodl:

“Last year, the Maltese government took a historic step towards legalizing blockchain and cryptocurrency. Malta was the first in the world to develop regulations that put blockchain business on a par with traditional companies. Through their regulatory stance, Malta hopes to create a favourable environment in which more companies pursue growth via blockchain technology.”

With this, the nation has earned the honorary title of ‘blockchain island’ by the community and responded almost instantly to the government's efforts. They even tried to encourage some of the worlds biggest firms to move there operations to the island.

Speaking on the countries new regulations, Cryptohound spoke to officials from the nation and what we can expect to see in the near future from Malta.

Regulations

Last July, the Maltese government approved three new laws that regulate the activities of crypto businesses.

• The Malta Digital Innovation Authority Act
• The Innovative Technology Arrangements and Service Act
• The Virtual Financial Assets Act

The authorities didn’t equate coins with fiat currencies, despite some of the expectations of the crypto community.

“According to new legislation, all tokens can be classified as either electronic money, financial instruments, virtual tokens, and virtual financial assets. Malta Financial Service Authorities (MFSA) has developed a test to understand how best to categorize a particular crypto asset. Some cryptocurrencies, according to officials, may also be treated as securities.”

Through these regulations, Malta has prepared an environment in which crypto businesses have nearly got the same rights and duties as their peers in traditional business.

According to Philipp Sauerborn (global tax and crypto advisor at Dr. Werner & Partner):

“Malta is one of the clearest yet toughest places to get a license. The regulation is very, very closely related to the ‘normal’ regulation for investment and /or financial licenses (MIFID2 standard). That means, basically, ‘you are playing with the big boys and my rules and regulations will apply.’ In Malta you will become, once licensed, a proper financial services company.”