How Is Malta Taking Advantage Of Blockchain, DLT, and Cryptocurrency?
Malta is taking every step to make its island as the first one in adopting not only the blockchain technology but also distributed ledger technology (DLT) and digital currency. The government has also passed a bill to this effect early this month and has now got the approval for the third and final reading of the bills. This would mean that these bills will form a basis to regulate the activities associated with digital coins, blockchain technology, and DLT.
Until now, the European country has succeeded in its efforts to get the largest digital currency exchange and is now looking to make it the biggest hub for such technologies. This was quite evident when the nation has come out with clear-cut and comprehensive regulations. This is in contrast to actions or approach taken by other countries, which are waiting for the results of tried and tested legal framework before any attempt to pass laws in respect of blockchain or virtual currency or DLT.
The three bills, the “Innovative Technology Arrangements, and Services Act,” “Malta Digital Innovation Authority Act” and the “Virtual Finances Assets Act” have sailed through the Maltese Parliament, Business Review reported. As a result, the three bills would become law. Since May last year, Malta has been preparing to be a friendly nation to support the cryptocurrency for more than one reason. Obviously, the country wanted to be the first in encouraging the new age technologies and make others to copy them. These moves come at a time when some of the countries have shunned digital currencies and exchanges.
Malta’s consistent efforts in the segment have enabled it to lure Binance, the biggest exchange for crypto in the world, to open its shop in the country. That suggested the country was taking enough steps even before the laws were in place. Apart from that, OKEx has followed Binance in launching its own office in the island.
Silvio Schembri, Parliamentary Secretary for Digital Innovation and Finance in Malta, said, “This is the last stage of the legislation that will put Malta on the international map for blockchain and crypto regulation. There is political consensus on this roadmap, and we are foreseeing that this area will be the mainstay of our economic growth for the next 4-5 years.”
It is only a question of time before Malta becomes the first country in the world to have comprehensive laws covering different aspects in digital coin segment. This included the treatment of virtual currencies, the initial coin offerings (ICO) launch and other related matters like establishing a digital currency exchange or DLT and blockchain services.
Malta’s Prime Minister, Joseph Muscat, has indicated earlier that digital coins would be “the inevitable future of money” and that it would create a basis for a fresh economy. In the short-term too, he believed that the virtual currency sector could bring jobs apart from stimulating economic activities. Also, the country has overtaken the European Union in establishing laws to regulate the market. That also prevented itself from the embarrassment of toeing any possible tough regulations by the European Union for all the countries through coordinated efforts.