Sun, sea and blockchain in the Mediterranean: Malta’s bid to become haven for cryptocurrencies
Crypto exchange Binance, founded last year in Hong Kong and now one of the largest, said in March that it’s moving to Malta after regulators in Asia cracked down on virtual money.
Malta’s prime minister is doubling down on the booming blockchain industry in a bid to diversify the European Union’s smallest economy -- and to even fight corruption.
“We’re taking a calculated risk,” Prime Minister Joseph Muscat said in an interview on Monday, by cutting “layers of bureaucracy” and offering fast-track approvals for digital players to set up shop on the island.
With tax rates as low as 5 percent, the government recently passed laws that seek to ease the trading and issuance of cryptocurrencies. Malta’s stock exchange is also in talks with companies to list digital assets.
The aggressive steps to become one of world’s friendliest jurisdictions in the industry appear to be working.
Crypto exchange Binance, founded last year in Hong Kong and now one of the largest, said in March that it’s moving to Malta after regulators in Asia cracked down on virtual money. The island is capturing an outsize share of crypto trading, according to research from Morgan Stanley, while Binance is working with other investors to create Founders Bank -- an institution servicing digital clients registered in the island.
“We have tourism, we have the service industry, we have finance and gaming,” Silvio Schembri, parliamentary secretary for financial services, digital economy and innovation, said. The country is working with auditor PricewaterhouseCoopers to launch blockchain licenses for regulated entities, which will be issued in November, he said.
