With huge cryptocurrency brand names like Binance, OKEX, making moves to call the island nation their home, Malta is emerging as something of a hub for digital currency activity. The reason for the cryptocurrency boom in Malta is because Malta has been making an effort to be an attractive jurisdiction for cryptocurrency companies.
Initiatives Taken By the Government in Malta to Promote Cryptocurrencies
Malta is now writing rules that should give exchange owners and users certainty about the future. The rules will cover how brokerages, exchanges, asset managers and traders operate, making them among the broadest set of regulations for the industry.
The power thoughts on cryptocurrencies by the most powerful body of Malta should not be ignored.
Prime Minister Joseph Muscat in a statement asserted that cryptocurrencies are “the inevitable future of money” and will form the base of a new economy in the future. Even in the short term, the arrival of cryptocurrency companies brings jobs and the economic activity they spur. Binance, the world’s largest crypto exchange by traded value, said it will “eventually hire up to 200 people” in Malta to carry out its relocation from Hong Kong.
As a matter of fact, the Malta government said in a consultation paper,
“The proposed framework will offer legal certainty in a space that is currently unregulated,”
Such legislation is already attracting cryptocurrency companies. Something that the other EU nations have failed to do. If the EU develops a more coordinated, and tougher, regime for cryptos, that could mean Malta becomes less accommodating.
With cryptocurrencies, Malta is now also welcoming blockchain businesses with open arms. Thus providing itself with immunity from any cryptocurrency fall outs in the market.
- Digital asset exchange platform Binance announced their intentions to move to Malta late in March. The company estimate that they will need to hire around 200 people in Malta to assist with their move from Hong Kong.
- Binance isn’t the only big name to make the move either. OKEX Technology have also announced that they will be relocating to the Mediterranean nation too earlier in April.
- Berlin-based blockchain firm Neufund and The Abyss, which operates a gaming platform which incentivizes users to earn digital currencies, said in early April they would set up in Malta.
The nation has, for a long time, offered international companies some of the most favorable tax rates around. Paying just 5% in taxes will obviously appeal to many startups in the space.
The push in Cryptocurrency business in Malta may also influence other countries to adopt cryptocurrencies rather than cracking down on them.
- Regulatory uncertainty in South Korea and Hong Kong may put them at a disadvantage if Malta gains in popularity.
- In Europe, there may be competition from Switzerland, another low-tax country. The Swiss Financial Market Supervisory Authority said it will regulate some initial coin offerings and has started a so-called crypto valley in the canton of Zug.
(This article has been inspired by a “https://www.bloomberg.com/businessweek” target=”_blank” rel=”nofollow noopener noreferrer” style=”color: #0c71c3″>Bloomberg Article which covered insights on how cryptocurrency adoption in Malta is turning tables)
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