Malta – now Blockchain Friendly

Blockchain technology is without any doubt trending topic these days. Malta, small member country of European Union (EU), decided to follow current trends and in July 2018 introduced three bills which established a regulatory framework for blockchain technology. Malta is intending to set up an inventive and appealing regulatory framework for those who are active in blockchain and DLT (Distributed Ledger Technologies), virtual currencies, cryptocurrencies, and for entities who are interested in raising funds through an ‘Initial Coin Offering’ (so called ICO).

Malta is already attracting many investors providing low taxation, sound financial services and strong economic growth. As a center of e-gambling in EU, blockchain technologies were logical move of Maltese government to stay on the top and ahead of competition, as company incorporated in Malta will have the opportunity to be an EU compliant entity in an excellent strategic location, combining excellent services and regulatory framework with low taxation.

There are currently numerous issues with ICOs and cryptocurrencies as they possess risks related to Know your customer (KYC) and Anti-Money Laundering regulations, resulting in difficulties with bank operations and other related financial services. However, this should change now, as Malta set out legal framework for such activities. It is likely to take months before financial institutions can adapt to new situation, resulting in update of their current processes and internal procedures. We are currently in touch with first Maltese banks willing to discuss opening bank accounts for Maltese company for the purpose of ICO, which is indeed new situation.

All in all, it can be expected that Malta will turn out to be increasingly attractive to foreign investors. The world of blockchain fans, economists, investors and other professionals in the financial industry waits to see how regulatory framework works in real life (so do we), therefore we as a corporate services provider are on alert to give you more reliable information to assist you with your decisions.

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