Benefits for Blockchain and Technology Specialists when relocating to Malta
Malta is positioning itself as a Blockchain hub and is attracting Blockchain and Technology specialists. Binance (an international multi-language cryptocurrency exchange company) has announced its move to Malta permanently placing the country on the Blockchain map for already existing companies as well as newly emerging businesses seeking a crypto-friendly jurisdiction.
Please be advised that users of virtual currency may lose some or all of their investment as the value of the virtual currency may change substantially in a short amount of time. Also be aware that transactions may be irreversible, even if fraudulent or accidental. Quickly changing laws or technical problems can adversely affect the use, transfer, exchange, and value of virtual currencies. There may be security risks.
Malta has been deemed one of the best countries to open and relocate companies for cryptocurrencies – as it has very good IT career opportunities, provides sufficient training, has a lovely environment, it is easy to start a company, and the market is continually asking for more specialised employees such as foreign Blockchain and tech specialists.
Malta provides residency and citizenship programmes which attract investors, gaming, aviation, and financial services executives. The Maltese government believes that the island’s residency programmes could be the key to attracting Blockchain and technology specialists from all over the world. Malta’s taxation rate is 15% to individuals who are resident but are not based in Malta and hold a qualifying position with companies licensed/ recognized by the adequate authorities. Individuals relocating to Malta under one of the programmes will benefit from visa-free travel to over 50 countries which include the Schengen member states.
Binance’s move to Malta will create 200 new jobs. As more and more exchanges and FinTech startup companies continue to relocate themselves to Malta, the island will truly foster an ideal environment for businesses in Blockchain and technology specialists.
The Maltese Government has announced plans to set up the ‘Malta Digital Innovation Authority’ which shall run the implementation of innovative technologies to quicken Governmental processes.
The Government of Malta realized that Blockchain is the technology of the future and now wants Blockchain to be a central part of the economy. Blockchain is going to become the future not only for financial service factors, but also health, education, transport and much more.
It’s also providing these companies with the opportunity of getting a certification so investors or clients who are looking into Blockchain technology (virtual currencies, ICOs, etc) and who still do not understand how Blockchain works, will get certification and proof that they are operating in the appropriate manner.
Maltese lawyers and financial service specialists have started revealing details of a plan of how cryptocurrencies would change the standards of living in Malta. Fintech are aiming to help the clients in this rapidly growing and evolving sector of law which would reshape the current financial services sector.
This innovative point of view fuses very well with Malta’s strategy to position itself as an innovation hub as for the last 20 years, the country has opened business-centric commercial community and has a proven record of economic success. Malta has developed a clear strategy for sustainable economic development, identifying most important economical key sectors such as using information and communication technologies, advanced manufacturing, life sciences, advanced logistics, tourism, financial services, creative industries and many more.
There are already a few cryptocurrency companies in Malta such as OKEx, Tron and BigONE. Malta is making leaps in DLT and virtual currency regulations, just as it did with iGaming companies a decade ago. Prime Minister, Joseph Muscat stated that the next step is to attract people and provide them with opportunities and training.
The new cryptocurrency firm called Bitmora will be officially opening their doors on the 26th of May. Bitmora decided to choose Malta after finding it difficult to deal with US banks. Even though there have been issues with local banks, the Bank of Valletta has appointed a special committee to look into cryptocurrency, however trading in such currencies was not yet accepted by the bank.
What is cryptocurrency?
A cryptocurrency is different from traditional currency in that it has no physical form. There are no notes or coins that a person can hold on to physically as proof of ownership. It is not issued by a government nor managed by a central authority such as a central bank.
- A digital asset designed to work as a medium of exchange of assets or money
- It uses cryptography to secure the transactions and to control the creation of additional units of the currency
- Through principals of cryptography, electricity is converted into lines of code that gain monetary value
- Most cryptocurrencies are designed to decrease in production in order to avoid inflation
Peer to peer exchanges, which are operated and maintained exclusively by software allow the participants of the market to trade directly with each other.
According to the research by the University of Cambridge, in 2017 there were 2.9 to 5.8 million unique users using Cryptocurrency.
Bitcoin, released in 2009, is the first cryptocurrency payment system and is the biggest and most popular online currency. After Bitcoin, other cryptocurrencies were released such as Gridcoin which has a computing power contribution, Omni – with first communication protocol and Burst – with first smart contracts which enable many things to run on the Blockchain which would otherwise have to be individually programmed in.
Interesting Facts about cryptocurrencies
- The main cryptocurrencies like Bitcoin and Ethereal can be purchased with traditional money.
- Transactions based on cryptocurrencies are processed fast and funds can be transferred anywhere within a matter of minutes. Distance and geography do not impact the speed of the transaction.
- It is very easy to get started. A user just downloads the required software for free and can start receiving and sending funds immediately. There are no accounts to be opened and no documentation to be submitted.
- Once a transaction is validated and finalised, there is no way of reversing it. When the money is sent, it is not possible to get it back. There is no central authority to complain to and no way to get a refund.
Cryptocurrencies are still at a very early stage of developing with plenty of room to grow. All cryptos together are worth around 67 billion euros.
You can use bitcoin to buy flight tickets, book hotels or just buy a coffee. However, there is no central bank – so fraud cannot be shut down. Luckily, bitcoin is kept pretty safe thanks to Cryptography.
For every transaction, you are announcing a couple of things to the Bitcoin network:
- Your account number – to receive bitcoins
- The account number of the person you are sending the bitcoins to
- How many bitcoins you want to send
Malta And Cryptocurrency: Final Thought
Malta looks set to be a very attractive location to foreign investors due to key factors such as legal frameworks, human resources and talent, the standard of living, great weather for most of the year, and a safe country to live in.
Featured Image: DepositPhotos/ gustavofrazao