Malta Plans to become the Blockchain center, as the country has welcomed Binance, while the company looks into starting the upcoming partnerships with local banks to allow fiat-to-cryptocurrency deposits and withdrawals as soon as possible.
Malta Plans to Become the Blockchain Center
One of the latest positive developments in relation to this initiative comes in face of the announcement from Binance, one of the most popular cryptocurrency exchanges in the world. The crypto exchange has chosen Malta as the location for their new headquarters. The CEO of Binance, Changpeng Zhao, has also welcomed other cryptocurrency projects to Malta, these including Tron.
Junior Minister for Financial Services, Digital Economy & Innovation within the Office of the Prime Minister of Malta, Silvio Schembri, has commented in relation to the Binance’s decision:
“Binance’s decision is a vote of confidence in what we’re offering as a country and as a Government in this sector, that is legal certainty in this space. During the meeting with CZ I explained our long-term vision reflected in the policy document that was launched in February, ‘Malta - A leader in DLT Regulation.’ We are not shying away but instead want to unleash the opportunities that holds by regulating the sector without stifling innovation. Ultimately our vision is to make Malta ‘The Blockchain Island’.”
Malta has welcomed Binance, as the company looks into starting the upcoming partnerships with local banks to allow fiat-to-cryptocurrency deposits and withdrawals as soon as possible. Binance appears to move to Malta due to the heightened cryptocurrency environment turmoil in Japan, South Korea, and China.
Malta Blockchain Regulation
Maltese authorities have been quite active in their attempts to provide a legal framework for the distributed Ledger Technologies. One of the documents from the government is related to the enforcement of three proposed legislation pieces. These include:
Malta Digital Innovation Authority Bill
The MDIA Bill’s Chairman and the Board of Governors will be selected by the Minister of Digital Economy. The Bill aims to establish the Joint Co-ordination Board (JCB). Its scope will comprise ensuring the effective cooperation between MDIA and other National Competent Authorities (NCAs) in the technology uses section.
It will also establish the National Technology Ethics Committee (NTEC). The latter will make sure that the appropriate standards of ethics are implemented in relation to the use of Technology Arrangements.
Technology Arrangements and Service providers Bill
This Bill appears as the second piece of legislation for Blockchain in Malta. It will lay out the framework for the registration of Technology Service Providers (auditors and administrators of Technology
Arrangements) and the certification of Technology Arrangements (DLT platforms and related smart contracts).
Virtual Currencies Bill
The third Bill is a VC Bill, which will provide the regulatory framework and the system for the Initial Coin Offerings (ICOs). The provisions of particular services in relation to the VCs will also be covered in this Bill. The regime will be applicable for brokers, exchanges, wallet providers, advisors, wealth managers and market makers related to VCs.
Will Malta become the Blockchain Island?
Furthermore, the ledger projects that are based in Malta have designed LP 01, which is the first DLT application in Malta that consists of a property transfer management system to simplify notarial work. The platform can be used by authorities to access real-time information about sales of property in Malta.
Aside from the visible developments, the difficulties and discrepancies among privacy issues, innovations, and regulations remain. Some of the countries adopt a strict stance in regards to the DLT innovations by updating their existing regulatory regimes. Some other nations, such as Malta, try to establish themselves as pioneers in this new field.
As Malta plans to become the blockchain center, we still have to see if this can be implemented in the future.
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