Island Of Malta
It may only cover an area of 316 square kilometers with a population of less than 500,000 people, but Malta is certainly becoming a big player in Blockchain. This small island has already enticed several Blockchain companies to its fine shores as well as Cryptocurrency exchanges.
The impact that this will have on the economy for this small country could well be massive. The foresight from the country is remarkable when many others are shying away from the Cryptocurrency industry because of concerns regarding regulation and fear of the unknown. However, Malta is fully embracing the new digital economy and is even penning regulations for the industry. The Maltese government wants to ensure that legalities are in place to look after everybody. There is regulatory certainty here which offers a great deal to businesses and exchanges and is why many are already setting up in Malta. Crypto exchange – Binance – is already planning on moving from Hong Kong to Malta in the not too distant future.
Digital Economy Regulation
Following all of the hard work by the Maltese government means that the country now holds the top spot for Cryptocurrency trading, which is one large claim to fame. The understanding of the Cryptocurrency industry by the Maltese will continue to ensure they have the leading edge. Simple facts such as knowing that Blockchain delivers so much more than just Cryptocurrency based solutions. The government is currently in the midst of setting up the digital economy regulatory body the Digital Innovation Authority (MDIA). One of its many roles will be to work with smart contracts auditing codes and granting licenses to those applying for a Technology Arrangement. This is a new type of virtual license and new legal entity that recognizes decentralized firms. Furthermore, there is also a Technology Arrangement Bill and Virtual Currencies Bill already set up and operational.
Technology Arrangements – which are raising quite a few questions – offer Decentralized Autonomous Organizations the legality to operate. The Technology Arrangements also stipulate how the company should operate. The reason why these are raising eyebrows is because this is the first actual time that there has been a virtual license in place to support Decentralized Autonomous Organizations. As an advisor to the government highlights, it wasn’t the easiest of tasks to complete because it was necessary to predict how technology will develop in the near future. However, legalized it will mean that there is the opportunity for autonomous robots to be legalized, i.e., in the future it is possible that decisions and actions can take place simply through smart contracts and artificial intelligence. By having the legal framework in place protects all but also allows the MDIA to license a firm through the financial services test.
In The Future
Although it is hard to believe that there are still a lot of industries and indeed countries that are staying away from the Cryptocurrency industry, Malta has embraced the new generation. And this bold move could well prove very financially rewarding for the country. It could also boost the economy through more jobs and a boost in business activities on the island.