It is truly incredible how a single law within a country can vastly improve citizens’ quality of life or make it substantially worse. This is doubly true when it comes to financial regulations. We’ve seen in the past how entire industries have thrived or crumbled thanks to a country’s laws.

Currently on the world stage, the country of Malta has established itself as a leading voice when it comes to all kinds of regulations. From its treatment of cryptocurrency to its tax laws to even its human rights track record, here is how Malta is leading the way.

Crypto

Malta did not earn the moniker of blockchain island for nothing. The country has some of the most progressive crypto laws you will find anywhere and it comes as no surprise that so many blockchain and crypto companies are based there. First, the country has taken great pains to make sure cryptocurrency is well-regulated.

In 2018 alone, 3 different regulations were put in place to manage crypto affairs in the country. These included the Virtual Financial Assets Act and the Innovative Technological Arrangements and Services Act, which cover initial coin offerings, digital currencies, technology service providers, and much more. This is in stark contrast to many countries that have barely-existent or poorly thought-out crypto laws.

The current regulation within Malta also takes great pains to recognize that there are different types of digital assets, including utility tokens and electronic money and makes sure each gets its own regulation. In terms of crypto tax, the creation of utility tokens and individual crypto transfers are not subject to any form of tax.

Financial tokens and income from crypto exchanges, however, are subject to corporate tax. Besides regulation, Malta has also been very forward-thinking about its use of blockchain technology in the public sphere, with a government-backed blockchain-based IP register launched in 2018.

Gambling

As we all know, gambling regulations can be quite stringent in certain parts of the world and this can really stifle the industry and those who enjoy gambling. Luckily, Malta has some especially progressive gambling laws.

Unlike a lot of countries, both online and land-based gambling are permitted in Malta. And while everything from casino games to sports betting to national lotteries is allowed in the country, they are collectively referred to as gaming. Of course, there is also a plethora of crypto gambling sites in the country thanks to the above-mentioned pro-crypto regulations. New platforms like https://www.megadice.com/en are already thriving; they allow you to buy crypto directly on the gaming site with your bank card, and also show you every bet, winning or losing, placed by other players so you can verify that a game pays out fairly.

These sites, crypto-based or not, are covered by ​the Gaming Definitions Regulations 2018 and to operate, companies have to receive a license from the Malta Gaming Authority. While this process takes a minimum of 6 months, the country hosts about 10% of the world’s online gambling businesses, which is impressive given that it is a small island nation.

B2C gambling operators are taxed at a rate of 5% of the gross revenue and are also required to pay a levy on all of their gaming devices, which ranges from 12.5% to 30%. Gambling services are also freely advertised, though there are some restrictions on advertising to vulnerable segments of the population.

Overall, gambling regulations in Malta are especially progressive compared to the rest of the world.

Taxation

There is perhaps no bigger and more important financial regulation within a country than its taxation laws. And in Malta, things are generally quite progressive. Corporate tax is placed at a fixed rate of 35% while individual tax works on a sliding scale i.e. the higher the income, the higher the tax. As such, individual taxation can go from 0% to 35%. While this is not an exceptionally low tax rate, many residents of Malta believe that it is worth it because of the perks they receive.

For example, Malta has laws in place that prevent any double taxation. To be considered a tax resident of Malta, a person would have to live there for at least 183 days out of the year. In this case, any tax they have paid outside of the country is considered a credit towards their income tax in Malta.

The country also has no existing capital gains taxes and doesn’t charge taxes for interest, royalties, dividends and proceeds from liquidation. These have made the country very attractive for both individuals and corporations to enjoy the progressive treatment in terms of tax.

Human rights

While it is heralded for its business regulations, Malta is also considered a leader when it comes to its human rights treatment. For example, the country offers free childcare for parents who are working or going to school. This includes morning and after-school care, which was aimed at creating more opportunities for women in the workplace.

Malta has also instituted LGBT rights in its constitution and is ranked number one in the ILGA-Europe for its treatment of LGBT people. This has made it an attractive destination for not just business but overall living as well.

Conclusion

When it comes to regulation, the rest of the world could learn a thing or two from Malta. The country has created a regulatory landscape that has attracted business from all over the world. This is thanks to its agreeable tax codes, support for the crypto industry and its embracing of the gambling industry. Its treatment of human rights means that it is an attractive place to live and work, which has brought in a horde of international talent.

Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.gamcare.org.uk/