If you’ve been paying attention to the blockchain industry, you’ll know that Malta has gained a reputation for itself as the blockchain island of the world. The small but might nation is not just known for its beautiful landscape. As the home of iGaming, an industry that is worth over $1.4 billion, Malta has benefited about 12% of its GDP.
Malta – The Blockchain Island
Thanks to the progressive stance Malta has taken in the cryptocurrency and blockchain industry, the country has become a hub for technological development hence the name blockchain island. The government is open minded and ready explore emerging technologies. The prime minister, Joseph Muscat, during an address to the United Nations gave a speech about how countries need to work together to solve problems that affect the world. It is important to note that Malta also has some problems of its own that may not be visible in a glance.
In July 2018, Malta set a record as the first country to ever pass cryptocurrency bills into law. The country established a strong regulatory framework for blockchain, cryptocurrencies and DLT. It also started hosting a yearly blockchain summit in 2018. When Steve Tendon, a member of the blockchain task force in Malta and a chief blockchain strategist, was asked about the progress of blockchain technology in Malta, he said:
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“The summit will be first event in which our intention is to publicly recognize legal personality to innovative tech like DAOs. This innovation in lawmaking is going to support the technological innovation in a way that no other law has ever done”.
The three cryptocurrency bills that were passed into law weren’t the only good news that was announced at the time. The country also announced that it has created a National Blockchain Strategy that has six pillars that are channeled toward the understanding of the technology. Various initiatives are covered by the program. It covers things like digital identity, blockchain public registries, and smart governance. Tendon continued:
“This initiative will no doubt attract entrepreneurs and developers that are interested in using decentralized technologies like decentralized exchanges, decentralized ICOs, decentralized banking, etc”.
While Malta has made a lot of progress on the blockchain front, this is just the beginning. The country is still making moves to lead the way in understanding of technology while creating a regulatory framework that will protect investors who have interest in ICOs. The country also intends to start benefiting from blockchain technology by opening its doors for business in the industry. This kind of regulatory certainty and positive stance towards blockchain is just what any country needs to stop being afraid of technology and start embracing its full potentials.
While Malta is happy to work with crypto companies, this doesn’t mean it is going easy on requirements. In fact, the rules and regulations surrounding these blockchain-based companies are tough. Notwithstanding, they provide the kind of clarity that companies need to operate effectively.