Since its release a bit over a decade ago, Bitcoin has made quite an impression on the world. Droves of people out there are loving the new cryptocurrency because of the many benefits it has to offer over other currencies. From complete anonymity to non-existent transaction fees, there’s a lot to be said about the positives Bitcoin brings to its users.
While some countries have been trying to stifle the use of Bitcoin, there’s been one that’s seemingly accepted blockchain and cryptocurrencies. Earning the nickname ‘Blockchain Island’, here’s how Malta has been handling the whole situation.
Cryptocurrency regulation
Malta has become the first country to bring in an organised framework for the use of cryptocurrency. Sticking to facts about the Bitcoin revolution (which you can read about here) and blockchain tech in general, Malta is trying to change the way people look at cryptocurrency, bringing to light the positives that can come from its use.
For starters, all companies in Malta will require licensed certifications to operate. With this, existing blockchain tech elements must be under strict supervision by government agencies. While this might sound like a bad thing, it’s quite the opposite. Thanks to the government’s involvement, the ability to keep an eye on traceability records and locations of the involved parties reduces the chances of ICO fraud happening significantly.
Why the positive approach?
Malta has had some positive experience with a similar thing in the past – online gambling. While it might have been seen as sketchy in the past, Malta saw the potential of the industry and did something similar to what it’s doing now with blockchain. With implementing solid government regulation to online gambling, the country managed to hit some incredible success. Now, they’re trying to repeat history with cryptocurrencies.
For the most part, what they’re trying to do is working. By setting up a very lucrative tax incentive system, transparent and positive regulation policies, and uplifting government initiatives, they’re driving a lot of business. Thanks to all of their efforts, quite a few large cryptocurrency exchanges have set up offices on the Island in hopes of benefitting from the welcome approach.
What this could mean for crypto
The country implementing this organised framework means that Malta doesn’t view the use of cryptocurrencies and Bitcoin as illegal or unprecedented. This type of reaction is the complete opposite of many countries out there that are trying their hardest to push blockchain and cryptocurrencies out of their sight. One example of this is China which has banned the use of cryptocurrency altogether.
The most common reasoning for this type of reaction holds weak arguments at best, claiming the decentralised nature of blockchain could lead to market volatility. With Malta already seeing some great results from their decision, they could serve as a great example of the potential gain from regulating blockchain and cryptocurrencies. Hopefully, this inspired other governments to step up their game and look at blockchain form a different perspective.