The island of Malta is renowned as a world-class tourist destination where travellers go to experience its array of historic and natural attractions. But, lately Malta has been making headlines for a completely different reason- blockchain technology!
For the last couple of years, Malta has slowly built a reputation as the go-to destination for movers and shakers in the crypto industry.
According to the Maltese government, the country seeks to grow with the emerging cryptocurrency industry and consequently reap the long-term prospects of blockchain technology. Read on to find out why Malta has taken this new direction in a bid to become the ‘Blockchain Island’.
Why Malta?
Malta has developed a regulatory framework and technological infrastructure that is very favorable to blockchain projects. As a result, it’s much easier for crypto startups to operate and launch ICO’s in Malta than it is in other territories. Thanks why blockchain tech giant Binance has moved their headquarters to Malta and inviting others to do the same.
Thanks to three bills that were passed in July of 2018, Malta is officially the first country to offer a dedicated legal framework designed to regulate the blockchain sector. The Technology Arrangement and Service providers’ bill for example, offers service providers an opportunity to register and get certified in their industry; while the Virtual Currencies bill is aimed at regulating ICO’s through the Financial Instrument Test.
All in all, Malta is the only established European country with a stable and thriving economy that has taken a stance to regulate the blockchain sector. It also doesn’t hurt that Malta has a strong gaming industry and financial sector which makes it possible for blockchain operations to thrive.
Why Malta Wants to Become the ‘Blockchain Island’
Reason #1: To establish Malta as a Crypto-economy giant
The Maltese government has taken a very strategic stance in terms of participating in the blockchain industry. They know that getting into the game early gives them an advantage over countries who are still dragging their feet or only looking at the short term gains of the blockchain economy.
Truth is, the blockchain industry in Malta has been regulated for the benefit of both the sector and the Maltese government. This has established Malta as an emerging yet notable Crypto-economy centre.
Reason #2: It’s great for the economy
For every blockchain company that comes to Malta, a multitude of jobs are created and/or sustained, due to the increased demand for professional services. Local businesses that offer legal counsel, branding, marketing services and real estate stand to benefit a great deal from the blockchain boom.
This will help to circulate money within the Maltese economy while further decreasing its already low unemployment rate of 4.4% possibly by another 2% or so in the coming years.
Reason #3: To attract the world’s largest cryptocurrencies
Thanks to having a favorable regulatory framework and technological infrastructure, Malta is attracting some of the biggest cryptocurrencies in the world. As mentioned, Binance recently opened headquarters in Malta and a plethora of other blockchain projects are launching ICO’s in this Mediterranean island.
Reason #4: To offer blockchain businesses a stable business environment that attracts investors
It doesn’t matter what field you’re in, every company needs to operate in a stable and conducive business environment in order to thrive. That’s exactly what Malta is offering through its legal framework- a long-term guarantee that bolsters investor confidence.
Reason #5: To benefit from blockchain technology innovation
Blockchain technology is about more than ICO’s and cryptocurrency. It’s an entire field of innovation that includes smart contracts, decentralized transactions and most recently a property management system known as LP 01.
This application was developed by ledger projects based in Malta to simplify notarial work and to offer updated data on property sales in the country.
LP 01 just goes to show that having Cryptocurrencies in Malta is a step in the right direction, and it may just usher in a new age of technological innovation in the country.
Conclusion
Malta is one of the first countries to recognize that cryptocurrency is the future of money and has made great strides to establish itself as a hub for this emerging sector. The country is fully embracing the innovation offered by blockchain technology and is a pioneer in developing legislation for this sector. That’s why Malta is on track to become the “Blockchain Island.”
