Malta is no stranger to the crypto world. In fact, Malta is one of those countries that have successfully embraced cryptocurrencies. It has even been dubbed as “blockchain island”. Unlike countries such as China, Malta has been welcoming toward crypto-related businesses.
Recently, Malta’s Prime Minister Joseph Muscat addressed the United Nation’s General Assembly. He said that blockchain technology can be used as a tool that allows Bitcoin and cryptocurrencies to inevitably gain widespread mass adoption and become the future of money.
In the past, Muscat already mentioned that Bitcoin and blockchain technology both have the power to eliminate third party service providers. According to Muscat, “I passionately believe technology revolutionizes and improves systems”. He also added that “This is why in Malta, we have launched ourselves as the blockchain island”.
He discussed further that “By being the first jurisdiction worldwide to regulate this new technology that previously existed in a legal vacuum. Blockchain makes cryptocurrencies inevitable future of money. More transparent, it helps filter good business from bad business”.
Malta as Crypto Refuge
Since the start of the year, regulatory changes forced different companies to go elsewhere in search for a crypto friendly approach that can help them grow. In fact, Kraken chose to stay in Malta when Japanese regulators opted to update their rules regarding crypto exchanges.
Malta’s approach when it comes to cryptocurrencies has also been praised by the CEO of Binance Changpeng Zhao. Zhao mentioned that the company is looking to invest in Malta in order to help grow its local blockchain industry.
Going Beyond Finance
Muscat believes that cryptocurrencies can help different industries including those that are not just in finance. He said that “Blockchain can provide solutions to health care systems where patients have real ownership of their medical records”. He also mentioned that “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”.
Changing Regulations
There are developments in the crypto market recently. For instance, the US Securities and Exchange Commission is set to decide whether or not there will be a Bitcoin ETF. However, it is also worth mentioning that a number of Bitcoin ETF applications already failed. The agency simply considered the possibility of price manipulation as a reason for these rejections.
Just last month, the British government has labeled the crypto industry as a “Wild West”. The British government promised to take action and provide better regulatory scrutiny in order to reduce money laundering and reduce the risk on investors.
But of course, there are a number of good news. A few months back, the US Securities and Exchange Commission has considered Bitcoin and Ethereum not as securities. This means that the rules and regulations applied to stocks and other financial instruments are not applied to both cryptocurrencies. In addition to this, regulatory clarity has slowly attracted institutional investors into play. You now have institutional investors that are looking to adopt cryptocurrencies. ICE has even teamed up with Microsoft and Starbucks for a crypto-related project.
