How will the final settlement of cryptocurrency influence Malta?
Last month, several large blockchain projects announced their decision to move to Malta: a raising funds platform for the Neufund shares and a digital assets exchange service OKEx. Now they will join the world's largest crypto exchange Binance and create an operational base on the island.
In addition, according to the CEO of the TRON blockchain entertainment content ecosystem, Justin San, his company also think about moving to this country.
What does it mean for Malta?
Malta plans to become the first jurisdiction that will create a regulatory framework for blockchain. While other countries are trying to deal with crypto terms, Malta is one step ahead. Now the state rethinks how companies work using smart contracts, how they develop platforms and protocols, as well as more broadly measures economic enterprises that use cryptographic technologies.
According to Alexandre Dreyfus, CEO of Media¬rex Sports & Entertainment, companies moving to Malta are seeking to help the country to become a superpower in the developing crypto economics.
Malta is already actively using the country's position as the European digital leader. Last year, the island showed the highest GDP growth among all European countries. This figure was 6.6%, and the economic growth of all other EU countries was only 2.4%.
If the government wants to continue such an active growth, the most reasonable step is to attract international blockchain companies, Dreyfus notes. Regulation of digital currencies, in particular the activities of exchanges that finance ICO, is becoming a high-priority aspect for the widely used technology. Malta provides blockchain companies with reputable and supportive jurisdiction, while being a safe and secure haven for digital entrepreneurs.
The emerging legal framework of Malta will regulate blockchain and distributed data, as well as create an ecosystem that will not only result in a massive growth of the industry, but will also show additional macroeconomic benefits. According to forecasts of specialists, blockchain will increase the growth of Malta's GDP by 10% over the next 10 years.
Personnel market development
Another factor is the creation of internal workplaces. According to Changpeng Zhao, CEO at Binance, only this year his company plans to hire 2000 new employees. And, probably, most of them will be in Malta.
Given the large number of well-known companies based in the country, the state will attract even more young foreign specialists having new digital skills.
It is also necessary to take into account other sectors that will inevitably work with blockchain and cryptocurrencies: jurisprudence, finance, marketing, iGaming.
But the most significant economic advantage is tax revenues. Since ICO companies increase profits within the shortest possible time, that is, much faster than traditional business, the government will receive tax fees much earlier.
Now the fastest growing technological unicorn in the history of Malta is the crypto exchange called Binance. For one quarter, the company's profit increased from $7.5 million to $200 million.
It is worth noting that iGaming was successful due to the fact that the government of Malta contributed to the development of growing international companies. Now the share of this business in the structure of the state's GDP is 11%. It employs more than 9 thousand international specialists and 270 gambling operators.
Gambling VS blockchain?
Many doubt that large operators will remain on the island. The matter is that in 2019 Sweden plans to make changes in the online gambling legislation. According to the Swedish tabloid Aftonbladet, thanks to the new regulation, the government seeks to return companies from such locations as Malta. The gambling industry and the blockchain sector should work in harmony, even if they have to fight for specialists.
In addition, it is expected that gambling will actively use blockchain for faster, safer and cheaper payments. Therefore, the synthesis of the two industries will be beneficial for Malta in the social and economic aspects.
When the country makes a breakthrough in the ICO, blockchain and cryptocurrency sectors, the state will be able to strengthen its reputation as a world leader in innovation.
The creation and development of an effective regulatory framework will provide stability for the development of the blockchain companies, create a community of like-minded people and ensure the prosperity of the crypto industry as well as Malta's economic growth.
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