The Mediterranean island nation of Malta is not particularly well-known for its size, being only slightly less than twice the size of Washington. But that hasn’t prevented it from becoming a force to reckon with in the financial market trading arena.
Malta is home to many forex and binary options brokers thanks to its relaxed regulatory environment compared to many other jurisdictions, attractive levels of corporate tax and easy access to major European markets.
And now tiny Malta is about to achieve another key milestone and earn itself the title of “Blockchain Island of the World” by becoming the first nation in the world to fully recognize and regulate blockchain technology.
About a week ago, the local media reported that the country’s parliament had approved three blockchain-tech bills, essentially enacting them into laws, thus creating a regulatory framework that will provide legal certainty for blockchain companies—the first of its kind in the world.
The move by Maltese parliament will help money to flow into the sector because blockchain companies will now have the freedom and peace of mind that comes from knowing that they enjoy the full backing of the law.
But what exactly are these three bills all about? Read on:
#1 The Virtual Financial Assets (VFA) Act
If you want to host an ICO project in Malta, this is the new law that will have your back. VFA has been enacted to regulate initial coin offerings and has set forth prerequisites that each project has to abide with to become compliant. Related: The Benefits Of Bitcoin Futures
One of these is that the issuer needs to make their financial history public.
#2 The Malta Digital Innovation Authority (MDIA) Act
This law stipulates the creation of the Malta Digital Innovation Authority to govern the development and the implementation of the guiding principles that have been set forth in the Act. The newly formed body will also be charged with regulatory functions.
#3 The Innovative Technology Arrangements and Services (ITASA) Act
This Act defines what constitutes blockchain-based enterprises before the eyes of the Maltese law. It’s designated to serve as the backbone of the other two preceding Acts.
Malta is already well-acquainted with blockchain technology with several crypto exchanges including Binance, BitBay and OkEx having set up shop in the country due to its progressive policies towards the industry.
None other than Malta’s prime minister, Joseph Muscat, has been blockchain’s cheerleader, even going as far as declaring cryptocurrencies the “inevitable future of money.”
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Besides the new blockchain laws, Malta is ranked pretty highly as a destination for local and international investment. As a member of the European Union, Malta has developed an abundance of healthy business ties and many fiscal agreements with other EU member states such as MiFID that investors find beneficial. The Malta Financial Services Authority (MFSA) is tasked with overseeing majority of the country’s financial regulation.
The island’s corporate tax set-up is at 35 percent, which can be lowered to between 0-5 percent. For non-Malta residents, the financial system has set up various schemes and double tax agreements with more than 70 foreign states.
Other key business attractions include high living standards, strong infrastructure with good connectivity including the Malta International Airport as well as highly qualified personnel.
By Michael Kern for Safehaven.com
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