Malta is a country that has support Cryptocurrencies, blockchains and cryptocurrencies-based business to its lengths and breadths. The country is so optimistic of blockchains and cryptocurrencies that the Prime Minister of Malta, Joseph Muscat in his speech at United Nations General Assembly, stated that cryptocurrency is inevitable the Future of Money.
Malta praises cryptocurrency at world stage
Malta has gained a reputation of a crypto-friendly country. The country and its ministers are so optimistic on blockchain and cryptocurrencies that they are leaving no stone to unturn to praising it. Last week, Prime Minister of Malta, Joseph Muscat spoke at the 73rd session of the United Nations General Assembly held in New York City. In his speech, he emphasized the potential of blockchain and cryptocurrencies and the future they hold. He said
“I passionately believe technology revolutionizes and improves systems. Which is why, in Malta, we have launched ourselves as the Blockchain Island by being the first jurisdiction to regularise a new technology that previously existed in a legal vacuum.”
He further stated that
“Blockchain makes cryptocurrencies inevitable future of money. More transparent it helps filter good business from bad business.”
The Prime Minister went on to state that the local government is passionate about the potential of the blockchain and its ability to eliminate third party service providers to give users complete freedom over information and money. He was quoted saying
“It can provide new solutions to healthcare systems where patients have real ownership of their medical records. Emissions trading systems can be taken to the next level. We can help verify that humanitarian assistance is reaching its intended destination. We can make sure that nobody is deprived of their legitimate property because of compromised data. Corporations will be able to become more accountable to their shareholders. States will need to move from hoarding information on citizens to regulating an environment where citizens trust the handling of their data.”
According to Joseph Muscat, there are of course some problems connected with transition to a digital economy. Many people around the world stick to “concepts that we have believed would stay with us forever”, such as the meaning of work, compensation for labor, and the government’s role in providing safety nets for citizens.
He also pointed out that some of the challenges will result from resistance of those who are afraid that the new emerging economy will lead to massive job losses and additional poverty.
Malta- The “Blockchain island”
Since early 2018, Malta has focused on building an ecosystem that significantly improves the businesses of crypto and blockchain-related companies. Striving to turn the Mediterranean nation into “Blockchain Island,” the government is opening its doors to blockchain and other so-called distributed ledger technologies. Malta believes the island can become a haven for cryptocurrencies like Bitcoin — the most well-known application of ledger technologies — but it also believes blockchain can help transform the country’s transportation and education systems.
On Legislative front, In July, the Maltese parliament passed three bills to set a regulatory framework and drive innovation in blockchain-like technologies with a hope that these laws will attract foreign financial tech companies to establish themselves in the country.
This supportive environment the government of Malta is providing has pulled a lot of crypto businesses to the country. Prominent of those being Binance, the world’s largest cryptocurrency exchange, moved its headquarters from Hong Kong to Malta, following regulatory obstacles in the Far East. Not just that, the exchange also planned to make Malta the home of the world’s first decentralized bank, the Founders Bank. Founders Bank won’t have any central authority. Instead, it will be community-owned by all its customers. Binance is backing the bank, serving as one of its first investors.
In August this year, another prominent Cryptocurrency exchange, ZB.com announced that it will set up its operations in Europe with the launch of a new exchange in Malta. This latest announcement followed the announcement of OKEx and DQR, who have also opened offices on the island.
With crypto business moving to Malta, the country definitely justifies the name of the “Blockchain Island” that the country has earned. And now with the speech at UNGA, the country has announced its arrival on the world stage. This will surely throw challenge to it European neighbour, Switzerland which is also fighting the race to be a crypto supportive nation
Will Malta actually be a real leader of cryptocurrency business? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.