Malta is predicted to be one of the leading countries for blockchain and cryptocurrency development. The country offers great IT opportunities, training, and a very wonderful environment. Now, a growing number of blockchain and cryptocurrency companies are considering relocating to Malta.
But what exactly is the reason behind this? What are the things that blockchain and cryptocurrency companies find attractive in Malta? And why is Malta becoming “the” blockchain island.
What is Cryptocurrency?
Before we get into the nitty-gritty of how Malta is evolving into a cryptocurrency hub, let us first briefly discuss what cryptocurrency is.
Cryptocurrency is a somehow new form of digital currency that has grown in popularity today. Some of the most popular cryptocurrencies you may be familiar with are Bitcoin and Ethereum. What made these currencies popular is the fact that they’re not issued by any government nor are they managed by one central authority.
As of last year, an astounding 5.8million people were found to have been using some form of crypto. What attracts people to use it is its decentralized manner that is allowed by blockchain technology.
You see, unlike with physical currencies, cryptocurrency transactions are recorded in a virtual ledger. And unlike centralized establishments like banks, the transaction ledger is processed by millions of computers. Additionally, the transaction records can be publicly viewed. This means no one would be able to manipulate the transaction records. Because of so, cryptocurrency has become a favorite of people looking to make anonymous and secure transactions.
Key Highlights About Cryptocurrency
There’s still a lot to learn about cryptocurrency, especially when numerous cryptocurrencies are starting to pop up everywhere. But to give you a quick definition, here are a couple of key highlights to help you remember how cryptocurrencies work.
- Cryptocurrency can be purchased with traditional forms of money
- Cryptocurrency transactions can be processed anywhere and anytime
- Cryptocurrency funds can be transferred to anyone within a matter of minutes
- Anyone can buy cryptocurrency online
- Finalized transactions are irreversible
- There is no central authority to address complaints and issue refunds.
How Malta Can Become a Cryptocurrency Hub
Now that you’re well aware of what cryptocurrency is, let us now get back to how Malta can become a cryptocurrency hub.
Though cryptocurrency is nothing new, countries that accept it apparently are. Malta happens to be one of the friendliest cryptocurrency companies as of today. In fact, one reason why people believe Malta is on its way to becoming a cryptocurrency Hub is the growing number of blockchain and cryptocurrency companies present in it.
As of today, Malta is home to numerous cryptocurrency and blockchain companies. It’s now also home to several cryptocurrency exchanges. Some famous cryptocurrency exchanges that have moved their operations in Malta are OKex, BitBay, and Binance.
Moreover, Malta is so open to blockchain companies that the U.K. blockchain startup, Omnitude, has actually formed a partnership with the Transport Minister of Malta to enhance their country’s transportation system. There’s even word that Malta has plans of incorporating blockchain technology to their education systems.
Reasons Why Malta Has Become Attractive to Blockchain Companies
Alright, you get it, Malta is such a haven for Blockchain companies that some of the biggest cryptocurrency companies already relocated there. But what could be the reason for this? Apparently, there could be three major reasons why these companies are starting to flock to Malta:
The first major thing that we’re sure attracted cryptocurrency companies to flock to the island is the Cryptocurrency jurisdiction in Malta. Just recently, the Maltese parliament passed three different bills that can help blockchain companies perform their operations in a regulated environment.
The three bills passed as of July 3 were the Virtual Financial Asset Act, the Malta Digital Innovation Authority Act, and the Innovative Arrangement and Services Act.
Though according to Joseph Borg, head of the blockchain advisory at WH Partners, it’s still too early to state if Malta’s newly regulated laws will be successful. On the other hand, Borg is still optimistic that if Malta successfully enforces these laws, Malta’s entire blockchain ecosystem could be greatly improved.
Another great thing about Malta are the different citizenship and residency programs that attract investors from different sectors. Furthermore, Malta’s taxation rate for people who aren’t based in Malta but are working for a company in Malta that is licensed by the authorities are only 15%. Lastly, people who are looking to relocate in Malta can avail the benefit of traveling visa-free to over 50 countries.
Booming Gaming Industry
Malta’s booming gaming industry is one more thing that could be attracting cryptocurrency companies. Especially when Malta’s gaming authority is starting to show efforts in using blockchain technology. In fact, the Malta gaming authority even created a document as a guideline for applying blockchain and cryptocurrency in the country’s growing gaming industry.