Cryptocurrencies, because Malta is increasingly decisive for the sector

Cryptocurrencies, because Malta is increasingly decisive for the sector. The Mediterranean island takes advantage of the EU's uncertainty of approach.

It is a small island in the center of the Mediterranean, but it is also one of the main cryptocurrency exchange locations. And Malta, the nerve center of operations in cryptocurrencycould become even more important in the near future. But for what reason?

Why Malta is so relevant

At a time when countries around the world are expressing ambiguous behavior about cryptocurrency, Malta is writing rules that should allow owners of exchange, and their users, to be able to enjoy a fair certainty about the short and long term future. The rules will concern the way brokers, exchanges, asset managers and commercial operators operate, making themselves one of the broadest regulations for the industry in the sector. "The proposed framework will offer legal certainty in a currently unregulated area," said the government in a consultation document.

What Malta will get in return

As reported by a recent dossier by Bloomberg, the Maltese prime minister Joseph Muscat believes that cryptocurrency are "the inevitable future of money"And which will form the basis of one new economy. Even in the short term, the arrival of cryptocurrency companies will bring work and new stimulus for economic activities to Malta. Binance alone, the largest cryptocurrency exchange in the world by commercial value, should hire "up to 200 people" in Malta to be able to move from Hong Kong.

What does this mean for cryptocurrency investors?

Transparency and certainty of the rules should be two positive elements for an industry that has been a major victim of fraud, hacking and sudden regulatory repression. But Malta's recent economic success has been overshadowed by corruption and corruption recycling scandals of money, including the death of a journalist who wrote about alleged unclear business even in the government. European Union lawmakers raised doubts about Malta's rule of law, a point heavily contested by Muscat.

How could Malta's rules relate to EU rules?

The EU is looking into the sector of the cryptocurrency, but so far has not issued any specific regulations. This uncertainty has allowed Malta to take the autonomous initiative in drafting its own framework. If the EU develops a more coordinated and stricter regime for cryptoassets, this could mean that Malta will become less accommodating.