Malta becomes cryptocurrency trading hub

April 23, 2018 10:51 amComments Off on Malta becomes cryptocurrency trading hubViews: 35

cryptocurrency trading hubTwo of the world’s largest crypto-currency trading platforms are planning to make Malta the center of their global operations, and according to the analysts others will certainly follow them. Authorities in the Mediterranean Archipelago, the smallest member of the European Union, are aiming to increase their wealth by becoming one of the most friendly jurisdictions in the world as a sector of concern among other regulators.

At a time when countries around the world are ambiguous about crypto-currencies, Malta is writing rules, which will give trade platforms and consumers a certainty about the future. The rules will cover the brokers, stock exchanges, asset managers and traders work, making them a broad set of industry rules.

“The proposed framework will provide legal certainty in a space that is currently unregulated”:, says the government in a draft. The national tax policy, which allows international companies on the island to pay taxes less than 5%, also helps.

Malta’s Prime Minister Joseph Muscat has expressed confidence that crypto-currencies are the “inevitable future of money” and will form the basis of a new economy. Even in the short term, crypto-currencies lead to job creation and generate economic activity. One of the world’s most popular trading exchanges is Binance, which announced that will “hire up to 200 people” in Malta to move from Hong Kong.

The transparency and legal certainty must be positive for an industry that suffers from fraud, hacking and sudden regulatory repression. But Malta’s recent economic success is overshadowed by scandals over corruption and money laundering, including the death of a journalist investigating corruption at the highest levels of government. Some MEPs voiced doubts about the rule of law in Malta.

At the same time, the EU is considering the regulation of crypto-currencies but has not yet published any details. This gave Malta the chance to take the lead in shaping its own framework. If the EU develops a more coordinated and tougher regime for crypto-currencies, it would mean that Malta will become more difficult to adapt.

Malta is trying to become a center for crypto-currency trading in the west. Japan, South Korea and Hong Kong are home to many exchanges, and Asian investors are a major part of world trade. Regulatory uncertainty in South Korea and Hong Kong could put them at a disadvantage if Malta gained popularity. Europe may have competition from Switzerland, another low-tax country.

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