Blockchain on Malta

Main articles:

• Blockchain
• Malta

2019

Registration of all lease agreements of housing on Malta was transferred to a blockchain

At the end of June, 2019 it became known of transfer of registration of all lease agreements of housing on Malta in a blockchain system. She guarantees safety of information in an invariable type and provides only an authorized access to it.

The prime minister of the country  Joseph Muscat  made the corresponding statement in an interview of Radio One radio station. According to him, reforming of the legislation in the field of real estate lease was approved by the cabinet after long discussions.

Malta transfers all contracts on lease to a blockchain. The prime minister of the country has far-reaching plans

The innovation ensures security of transactions for those who lease the apartment or the house and also those who remove them. The initiative prevents falsification of records and provides data access only to authorized persons. Besides, the distributed register excludes a possibility of signing of the contracts for places which are not issued properly, told the Muscat.

Now we will show to people additional benefits of this technology, applying it to what they will use in the everyday life. It shows how digital transformation influences their life — he added.

Earlier in 2019 Nur-Sultan (the capital of Kazakhstan) started a blockchain platform for lease of the land plots and premises.

Malta  became  the first-ever state which implemented regulation for the industry of a blockchain and cryptocurrencies. The favorable legislative environment promoted  moving  to the country of one of the largest world cryptoexchanges — Binance. Also the exchanges which faced problems in the countries such as as  the Polish BitPay  or  the Indian Zebpay moved to the island.

Joseph Muskat said that all state services should be transferred to a blockchain to minimize even more paper document flow. By the prime minister's estimates, the technology is capable to reduce consumption of paper by 77%.^[1]

IMF: rapid development of a blockchain and cryptocurrencies threatens economy of Malta

In January, 2019 the International Monetary Fund (IMF) issued the report in which reported that development of blockchain technology on Malta created "significant risks" regarding money muling and financing of terrorism.

According to the report of the IMF prepared based on an official visit of representatives of organization to Malta, the finance regulator already faces considerable pressure in the light of popularity of the island among the financial technical-companies. It is noted that "the growing number of the financial institutions which are under supervision, fast development of new products, the changing normative and legal environment and toughening of labor market strengthened load of Financial services authority of Malta".

In 2018 Malta accepted the whole packet of bills which adapted the local legislation for requirements of the cryptomarket

Malta adopted a number of the laws concerning a blockchain and cryptocurrency, creating a normative and legal environment which was attractive to business. Competing with London, Berlin and Zug (Switzerland), the country quickly became the large European center of a blockchain and cryptocurrencies. In 2018 the kriptovalny exchanges Binance and OKEX which daily trade volumes often exceed one billion dollars a day expressed the intention to move the headquarters to the island. Now these and other exchanges will have to develop tools for identification and prevention of money muling within the business.

Except concern about money muling and financing of terrorism, the IMF also paid attention to other large sectors on Malta. Here enters online games and financial services which are widely provided on the island. Besides, the IMF is concerned by recently implemented scheme of investment nationality which allows citizens of the countries which are not entering the EU to receive the Maltese passport on condition of investment of at least €250,000 into the Maltese government bonds or actions for term not less than 5 years.

Strict warning of the IMF shows problems which such countries as Malta face, especially when case comes about identifications and suppression of criminal activity.^[2][3]

2018: As Malta became the capital of a blockchain

In July, 2018 Malta opened doors for cryptocurrencies and technologies of the distributed register, aiming to turn the island state into the capital of a blockchain. The parliament of Malta adopted three bills designed to set a regulatory framework of use of blockchain technologies and to stimulate their development and financing.

These technologies allow to make safely and quickly remittances without intervention or control from the third parties, reducing transaction costs. However the government of Malta is interested not only in use of bitcoin and other cryptocurrencies – though in this most known use of technologies of a blockchain, the sphere of its use is not limited to them. The government considers that new bills will allow to transform the transport and educational systems of the country and will attract the foreign financial technology companies.

The parliamentary deputy minister of Malta on finance, digital economy and innovations Silvio Schrembi noted that new bills for the first time in the world at the state level gave to blockchain technologies legal determinancy. Analysts note that this step from the government of Malta will make the country incredibly popular for development of the innovative technologies. The chief consultant for blockchain technologies of WH Partners company Joseph Borg considers that Malta did right thing, having delivered on the growing popularity of cryptocurrencies and a blockchain. He noted that now the Mediterranean island for certain will become the center of the innovation technology startups and a blockchain companies that development of the state economy will undoubtedly push.

Not only cryptocurrencies are interesting to Malta, projects on use of the distributed register in education and transport are already started

Having created the legislation for blockchain technologies, Malta outstripped other countries of the European Union. However it is not the first European nation which concentrated the attention on new technologies - Lithuania already becomes the cryptocurrency center, and Estonia is going to enter national cryptocurrency under the name Estcoin. Outside the EU this way Switzerland follows – the Canton of Zug is already called "cryptovalley". However, according to Borg, approach of the government of Malta essentially differs from the others – while other countries pay the main attention to cryptocurrencies, Malta concentrated the forces on development of the technology of a blockchain, hoping to find for it broader application.

The Minister of Transport of Malta noted that blockchain technology are a crucial element of national strategy. In May, 2018 the government announced partnership with the British Omnitude blockchain platform to optimize network functioning of public transport of the island. Since 2017 Malta cooperates with Learning Machine Technologies in work on the experimental program allowing the Maltese students to receive records of training materials using blockchain technology. The government intends to involve new technologies and in other sectors – in the official resolution of office of the prime minister is told that the blockchain can be used for vote on smartphones and privacy protections of data on health of the population.

Support of the innovative technologies at the legislative level made the island attractive to the financial technology companies. The world's largest cryptoexchange Binance moved the headquarters from Hong Kong recently to Malta as the legal situation in east countries is not so kind to blockchain technologies. Besides, on Malta are going to found the first-ever decentralized bank, as one of the first investors of which Binance will act.^[4]

You look also the Blockchain and cryptocurrency

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