The island of Malta has steadily been building its reputation as a leading jurisdiction for blockchain and cryptocurrency markets. As a result, the Maltese government has positioned itself attracting future blockchain based investment to the island.
Lagarde speaks in favour of cryptocurrencies
Last May, three laws regulating various aspects of the blockchain industry passed through the Maltese parliament. This positive approach towards cryptocurrencies was also met by Christine Lagarde. In a blog post, the head of the International Monetary Fund affirmed the global benefits of cryptocurrencies. She also stated that cryptocurrencies such as Bitcoin could pave the way for fast and inexpensive transactions. Moreover, the blockchain technology could make financial markets safer and more transparent.
Upon the publication of Ms Lagarde’s comments, the price of Bitcoin registered a rise. Although, it is not clear if these gains are directly related.
“Just as a few technologies that emerged from the dot-com era have transformed our lives, the crypto assets that survive could have a significant impact on how we save, invest and pay our bills,” Ms Lagarde wrote in her blog post.
In her blog post, Ms Lagrade repeated comments she made to the Bank of England last year. She had called for a more even-handed approach towards regulation. This would eventually lead towards regulating such currencies, eliminating exploitation of benefits whilst minimising associated risks.
A flexible framework
Malta’s proposed acts that are soon coming to force, are to provide a flexible framework to entrepreneurs. These laws are to provide substantial growth and development to the sector. It also offers protection for who is investing in it.
A further boost for the island was the announcement that the world’s largest cryptocurrency exchange, Binance. This world-renowned company stated that its move to Malta was reached due to its “very progressive [approach] when it comes to crypto and fintech”. Another company Bitbay has also announced its intentions to relocate to Malta after extensive fact-finding on the perfect EU jurisdiction.
The future of money
PM Joseph Muscat has stated that he believes cryptocurrencies are “the inevitable future of money”. Moreover, they will be an integral part of a new economy in the future. In the short term, the move of several established crypto businesses to Malta is set to create hundreds of new jobs. The new set of laws that will be coming into force in due course are set to offer the broadest set of regulations for the industry. The three acts will provide regulatory clarity to brokerages, exchanges, asset managers, and traders amongst others.
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