Digital Currency to Shape Future of Money
Henry Tan
Cryptocurrency is the future of money, with Malta’s chief minister emphasizing the emerging currency is an “inevitable” part of a digital future.
“Blockchain makes cryptocurrencies the inevitable future of money, more transparent since it helps filter good businesses from bad businesses,” Joseph Muscat, Malta’s prime minister, said at the 73rd Session of the General Assembly of the United Nations.
The Malta premier argued the distributed ledger technology can give patients “real ownership” of their medical records, as well as “verify that humanitarian assistance is reaching it’s intended destination” and helps bring more accountability to governments and corporations.
Muscat justified the country’s decision to establish the blockchain island, saying they are the “first jurisdiction worldwide” to oversee the technology which “previously existed in a legal vacuum.”
Earlier, the island nation in the Mediterranean Sea fulfilled its promise of giving a “lovely sanctuary” for cryptocurrency firms and exchanges with its arguably the “most forward-thinking regulatory agenda.”
Malta, through MSX, Malta Stock Exchange’s financial technology unit, signed several new agreements aimed at establishing new marketplaces for tokenized securities which include a partnership with Neufund, a platform designed for securities tokenization and issuance.
Both parties shall create a “regulated and decentralized, global stock exchange for listing and trading tokenized securities alongside crypto-assets.” However, they did not provide additional details about their collaboration.
In June, Malta approved three bills related to blockchain, cryptocurrencies, and distributed ledger technology, marking a significant step towards making the nation a “blockchain island.”
The bills, entitled “The Innovative Technology Arrangements and Services Act,” “The Virtual Financial Assets Act,” “The Malta Digital Innovation Authority Act” are expected to guide the government on maximizing the potential of blockchain and attaining its goal of becoming a global crypto business hub.
Since these developments, numerous cryptocurrency-focused firms such as the Binance exchange have moved to set up business entities on the island, with some agreeing to forge partnerships with the local bourse.
Taking the heed from Malta, other jurisdictions are also gearing towards putting up frameworks governing companies using the technology, but aimed not to impair business or innovation.
For instance, Bermuda is eyeing to attract more firms by providing regulatory certainty with new legislation which would enable initial coin offerings (ICO) under certain requirements. It has also formed a task force to promote cryptocurrency commerce.
“Bermuda has an opportunity to become a global leader in the Fintech space by being one of the first countries in the world to specifically regulate ICOs. The proposed regulatory framework will provide legal certainty to companies looking to conduct ICOs in Bermuda,” David Burt, prime minister of the British Overseas Territory, said in March this year.
There are similar moves within the European Union to institute new rules for digital currencies, with one legislator also proposing standards for ICOs that would allow token sale projects to operate across their economic zone.
“Be assured, that as legislators we’re trying to make ICOs more possible and more successful, that certainly is our objective,” Ashley Fox, a Member of the European Parliament (MEP), said last month.
