Legality And Regulation Of Bitcoin And Other Cryptocurrencies In Malta
It is no secret that the government of Malta has any specific regulations on cryptocurrencies and bitcoin. The PM of Malta in the person of Joseph Muscat made an accouchement in 2017 on the approval of the government to create a method of promoting both blockchain and bitcoin technology. The PM mentions that the bitcoin technology can help to process, store and handle sensitive information in a decentralized and an immutable environment.
Cryptocurrency In Regulatory Sandbox May Be Tested By Malta's Government:
A special trial on cryptocurrency is about to take place by the government of Malta. This unique test is created to evaluate how cryptocurrencies can impact the nation’s economy.
According to a reliable source, the trial is called a sandbox test. PwC is a large auditing company that has helped to put together comprehensive information on the sandbox test. PwC has a record of advancing blockchain technology in Malta. With the trial, the government of Malta will be able to strategize how to handle operations concerning cryptocurrencies.
The Times of Malta is also a credible source that has investigated the move of the government to approve the bitcoin architecture. The Times continued by saying that the government’s idea is to allow bitcoin architecture to be regulated within a framework. With this structure, regulators will have the opportunity to test legislations and controls for blockchain and bitcoin technology.
In a communiqué of tech experts, a government spokesperson did not provide specifics concerning how the process will take place. Malta’s domestic policy on bitcoin technologies will eventually change if the plan of the government is true. As a good example, the central bank of the Netherland in 2016 attempted to extrapolate from blockchain’s early phases on how the structure will become in 2140. In time past, the impacts of bitcoins on the economies across the world have been explored with different results.
Maltese regulators are still not sure of the direction or step to take at the moment. Nevertheless, the trial will be one of the several attempts by governments globally that have tried to evaluate the economic effect of bitcoin technologies.
The Rapid Growth Of Cryptocurrencies In Malta Remain Unstoppable:
The PM of Malta suggests that European regulators should give cryptocurrencies such as bitcoin a chance. On 23 February 2017, Malta’s prime minister spoke at the CEPS Ideas Lab in Belgium about his view of cryptocurrencies. Joseph Muscat continued by encouraging European Union governments to support the blockchain technology. The Malta’s PM also mentioned that the technology is gradually taking control of most financial institutions available. The transcript and publication of the Malta’s prime minister were covered by Live News Malta.
The purpose of the prime minister’s support for cryptocurrencies is to encourage European Union nations to join the chorus of approval. Muscat backed up his points by saying that most EU nations have encountered socio-economic challenges in recent years and the blockchain technology can help reduce the pressures. The Prime Minister unleashed a prototype for EU nations to try. He encouraged nations to take advantage of Brexit and invest in such areas to see how the bitcoin technology can work. Conclusively, Malta’s PM mentioned that it is not possible to stop the rise of cryptocurrencies, however, there may be a slow movement to the concept.
Attendees of the CEPS Ideas Lab in Brussels heard that Muscat doubled down by saying European regulators should create and establish mechanisms to control cryptocurrencies rather than resist. This will help to protect consumers and as well harness the domestic economy potential. In fact, with this idea, Europe will become the natural home of innovators.
The Views From Malta’s Market For Cryptocurrencies And Bitcoin:
The creator of BitMalta, Jonathan Galea has told several sources of the local government initiatives of promoting cryptocurrencies in Malta. With this process, Malta will have the opportunity to deliberate its progress back in 2004. This is because Malta remains the first European Union nation to control remote gambling. Malta is still enjoying the benefits of its bold step taken on regulating remote gambling until today. Jonathan Galea also concluded that it will be a great profit for Malta if the first step can as well be taken to encourage the bitcoin technology.
In a nutshell, the intention of the Malta’s Prime Minister is to set up an apparatus that will allow blockchain technology operate within the country.