Recently, if I ever hear of a new blockchain or crypto start-up, I find that they’re basing themselves in Malta. The reason being is that Malta is one of the few places that has introduced a framework of regulation for companies to work around. Without such a framework, companies have no idea whether their ideas will be shut down as soon as they begin.
Malta has history for such innovation. Before blockchain, the country was a hub for video game companies. By offering low tax rates, they were able to create a thriving and exciting industry on their doorstep. This is now being reinvigorated through new blockchain companies.
The proof is in the pudding, so to speak. The Malta Blockchain summit broke recent trends by having 8,000 attendees compared to the expected 5,000. In the recent bear market, this is impressive. Whilst most major conferences have been seeing a decline in attendance, Malta bucked that trend. We attended this conference and managed to hear from not only John McAfee and Charles Hoskinson, but also the Prime Minister of Malta itself. Such evidence shows how seriously Malta is taking this industry.
Whilst at MJAC, I overheard a conversation between a journalist and a cryptocurrency developer as to why they didn’t choose to base themselves in the UK. Whilst they wanted to, without the framework, this wasn’t possible. Their idea was that as soon as a framework appears, they can then adapt and move over to the UK. Until this happens though, there remains little point in looking at that option.
Regulation for cryptocurrencies in major nations will begin to creep in soon it seems. Malta recently signed a partnership with 6 other EU nations to cooperate on blockchain projects. Whilst major nations such as the UK have been slow to react, they will soon have guides for how such companies should operate. However, Malta’s first move advantage could see it remain the home of crypto and blockchain.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.