Ektico on a strategic shift: Leveraging Malta as a fintech powerhouse

For many in the fintech industry around the world, the story around Malta has changed drastically. While the hype of the term ‘Blockchain Island’ has now faded, what remains is a more mature, pragmatic and powerful EU financial hub.

At Ektico, the company is experiencing this evolution first-hand. Malta is no longer a hype but a strategic advantage. The country is smartly using its nimble regulation and a deep-rooted financial ecosystem to nurture the next generation of digital financial services. This is not just a trend; it's a calculated strategy, and from an external viewpoint, it is paying off.

So one of the most interesting things about Malta is that they are not starting from scratch. They are building on a pillar of the national economy – a financial services sector which recorded a whopping 11.8% growth in Gross Value Added in 2023. This is not just a figure; it is a taproot of nearly 12,200 professionals competent in their work. For a company like Ektico, this existing ecosystem helps them to get the stability, experience, and operational partners needed to scale successfully.

Regulation as an enabler

From Ektico's point of view as an operator, regulatory certainty is by far the most important advantage that Malta grants. The Malta Financial Services Authority (MFSA) has developed an international reputation of being both proactive and approachable – a combination few can claim.

They were early adopters for the VFA framework and, what is more, are now fully in sync with the EU over landmark digital finance legislation, the Markets in crypto-assets regulation (MiCA) and the Digital operational resilience Act (DORA).

What does this mean for a fintech?

• It means a well-defined single set of rules, harmonized and risk-reducing operations.
• It gives the legal certainty that is needed to invest and innovate with confidence.
• Most importantly, it opens up the "EU passport".

Ektico's key is a licence in Malta, which opens the entire single market of the 27 member states of the European Union. This isn't a bonus, it's a core strategic advantage.

This clarity is exactly why there is such a thriving community of peers. The ecosystem already has more than 36 Electronic Money (EMI) institutions and more than 30 Payment Service Providers (PSPs) in the ecosystem. They are a part of a vibrant community around the sustainable future of finance: payments, regtech, and embedded finance.

Talent and infrastructure

A licence is only as good as you are to operate. This is where the other pillars of success in Malta come into daily business.

• Strong Financial Infrastructure: Ektico is connected to a well-developed banking system and, importantly, a world-class network of professional services firms (legal, audit and advisory) who specialise in the industry. This integrated support system is a necessity for managing compliance and working efficiently.
• An Unrivaled Multilingual Talent Pool: As an EU member, with English serving as the official business language, recruitment is simplified. The local labor force is very educated with a heavy emphasis in the areas of finance, law, and technology. In addition, soaring quality of life and government incentives make Malta attractive for the highly specialized expatriate talent required to innovate.

A government as a partner

What Ektico has found in Malta is that the government doesn't just regulate, it creates an environment for growth. This aid is material and pro-active.

The Malta Digital Innovation Authority (MDIA) offers invaluable tech advisory support and Malta Enterprise, the national economic development agency, features a robust support mechanism. Not just a vocal support, but a monetary one.

Plans such as the Start-up Finance Scheme and the new EUR10 million Malta Venture Capital Fund are unequivocal messages to the market. The establishment of this fund to co-invest in promising local tech startups is a demonstration of the strong state-backed commitment to bridge the funding gap and ensure the long-term success of the ecosystem.

The way forward

Malta has overseen a successful transition from its roots as a crypto pioneer into a formal and compliant EU fintech hub. This maturity is one of the reasons why Ektico and many peers today find it one of the most attractive European bases.

It is an island that has struck the right balance: innovation with strong regulation and vision underpinned by real investment. Thus, the diversity, resilience and full integration of a digital finance ecosystem is being developed. Ektico is noted as being a proud part of that future.