Blockchain is considered to be one of the most disruptive technologies in recent years and there is a good reason for that. However, it is still unclear how it will be regulated and become mainstream. For many, blockchain is not only a mystery, but a risky topic.
The country is the first in the world to create a framework.
Malta, on the other hand, has taken a completely different approach to blockchain – one that turned the little island into a heaven for companies interested to develop and work with the technology. The country is the first in the world to create a framework for companies and to allow them to work in a secure environment with government support – an important factor that is boosting up the industry and is bringing big names and firms. The world’s first holistic approach on the subject captures the Distributed Lager Technologies (DLTs) and smart contracts. However, the Maltese government is looking into extending the legal framework to Artificial Intelligence and Internet of Things.
In the very beginning there were many applications from dubious places...
The standards, created by Malta, assure only legitimate companies receive the needed status to operated on the island. In the very beginning there were many applications from dubious places, but now those that apply are working on finding the best legal way to work out blockchain, assures Paul Caruana Turner, senior executive at Grant Thornton Malta, during a short meeting at the London Blockchain Expo. The company supports hundreds of organisations and gives them legal advice so they can navigate successfully on the Blockchain market.
The certification process is not simple and companies need to prove they intend to operate in Malta and that the people behind them are serious. The authorities will issue a certificate only when ‘all legal administrators and shareholders with 25% or more ownership or control are fit and proper persons.’ There are four types of licenses provided that give different types of rights and obligations for investment.