Real Estate Investor Magazine South Africa April/May 2019 | Page 64

TECHNOLOGY
Malta wants to
woo crypto crowd
Malta leads blockchain and
cryptocurrency regulation.
SUPPLIED
I
n late 2018, Malta pioneered world-first legislation in
blockchain and cryptocurrencies, providing one of the
broadest legal and regulatory frameworks to support
the growth of this new sector, attracting an influx of block-
chain companies to Malta.
According to JP Fabri, block-chain specialist,
economist and Director at the ARQ Group, Malta
has set global standards that allow for market integrity,
investor protection and inclusivity within a tech-friendly
environment. The inclusivity of blockchain incorporates
people outside the traditional financial systems.
As one of the EU’s fastest growing economies, Malta
has carved out an economic niche in remote gaming,
aviation, maritime services and pharmaceuticals, built on
a robust, EU-compliant legal and regulatory framework
that provides stability and security to investors, backed by
easy access to a single EU market.
‘Malta has established itself as the remote gaming
capital of Europe, with the iGaming sector booming and
and worth a whopping $1.4 billion, 12% of Malta’s GDP,’
said Fabri.
‘As a global economic centre, Malta has always attracted
wealth and pioneers in different industries,’ he said.
Speaking ahead of the BlockChain Africa Conference
2019, Fabri said Malta continued with its tradition
of regulation and jurisdiction. A sandbox creates an
innovative playground for regulators and investors to
experiment with blockchain and cryptocurrency.
As one of the emerging sectors in the Maltese
economy, the government is paving the way to establish
the ‘Blockchain Island’ by enacting laws that offer
comprehensive legal and regulatory coverage of blockchain
technologies and cryptocurrencies.’
‘Malta adopted a progressive stance on cryptocurrency.’
He added the ground-breaking legislation also
enables the classification of a virtual currency, or ICO,
to be certified in Malta. ‘The Malta Financial Services
Authority has issued standard conditions for Professional
Investment Funds that want to invest in virtual currencies,’
said Fabri.
62
APRIL/MAY 2019 SA Real Estate Investor Magazine
‘Blockchain can support social inclusivity and the
technology can bring about efficiencies and cost reductions
that are nothing short of a financial revolution,’ said Fabri
in comments prior to the conference in Johannesburg.
Fabri recently presented a paper at The Commonwealth
Secretariat on how blockchain can bring tangible benefits
and support disaster risk reduction in line with the UN
Sendai Framework and also support public services
by improving the delivery and effectiveness of services
leading to a deepening of democracy.
‘Unfortunately cryptocurrency has been the focus
and got bad press, whereas blockchain is positioned to
revolutionise the world by giving tangible benefit to
citizens such as during elections.’
‘Blockchain offers a layer of trust above transactions and
is perfect when the trust element can be guaranteed, such
as elections, or the purchasing of property and vehicles.
In Georgia it takes 10minutes to change ownership of a
house with the use of blockchain,’ he said.
When asked about the relationship between Malta and
South Africa, Fabri said that Malta is ideal as a business
relocation and co-location for South African companies,
especially those seeking entry into the European market.
‘Malta is increasingly becoming an attractive option for
investment and/or immigration for a number of South
Africans, driven by a strong and stable economy and a
relatively low cost of investment, English speaking, easy
access to Europe at a fraction of the cost of Luxenbourg,
with a lower tax rate, plus access to a European and
Schengen area passport programme. Malta is fast-
establishing itself as a financial services and fintech hub
and the latest strategies launched by the authorities further
add to the attractiveness of the island.’
Malta’s Individual Investor Programme (IIP) is rated as
the world’s top-ranking Citizenship by Investment (CBI)
programme for each of the past four years, and rates the
Maltese passport as the joint-seventh most powerful
globally. Malta also ranked highly in Professional Wealth
Management’s 2018 CBI Index for its due diligence and
freedom of movement.