Malta’s Registry Of Companies Plans To Employ Blockchain-Based System
Malta’s Registry of Companies purportedly plans to run on a blockchain-powered system, as reported by the local news outlet the Malta Independent on May 8.
The Registry of Companies is basically a public registry that holds official information and documentation pertaining to new and existing companies. The agency branched off from the Malta Financial Services Authority’s (MFSA) as a separate entity at the end of last year. Malta Independent asserts that the new agency will be run on a blockchain-based system.
The science behind the standalone agency is aimed at strengthening the internal management structure of the Registry. Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri reportedly said:
“Through an extensive investment in IT, the Registry of Companies will be more efficient and will lessen unnecessary bureaucratic procedures. It will be run by a system which will handle all of the processes performed by the Registry of Companies. The new system will make possible the provision of new services which with the present system are not being provided bringing the agency the first in the world to be run on a blockchain based system.”
Seven southern European Union member states, including Malta, released a declaration last December, promoting the use of Distributed Ledger Technology’s (DLT) in the region. The document released lists the services that can be benefited from the use of the Blockchain, including “education, transport, mobility, shipping, Land Registry, customs, company registry, and healthcare.”
In January, the International Monetary Fund (IMF) clocked in that the growth of blockchain in Malta had created significant risks of money laundering and terrorism financing in the island’s economy. The IMF recommended the authorities that they would require to apply more sanctions and sharpen their understanding of possible risks and regulatory breaches. Following which, the regulators released a guide over crypto assets and the subsequent risks related to them.
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