{"id":29401,"date":"2018-07-18T00:00:00","date_gmt":"2018-07-17T12:00:00","guid":{"rendered":"https:\/\/bravenewcoin.com\/insights\/malta-continues-to-champion-crypto-as-home-of-euro-backed-stablecoin\/"},"modified":"2018-07-18T00:00:00","modified_gmt":"2018-07-17T12:00:00","slug":"malta-continues-to-champion-crypto-as-home-of-euro-backed-stablecoin","status":"publish","type":"post","link":"https:\/\/bravenewcoin.com\/insights\/malta-continues-to-champion-crypto-as-home-of-euro-backed-stablecoin","title":{"rendered":"Malta continues to champion crypto as home of Euro-backed stablecoin"},"content":{"rendered":"
The Government of Malta has repeatedly stated its desire to create an environment conducive to the development of the blockchain ecosystem, and have laid out what is amongst the most forward-thinking crypto agendas in the European Union.<\/p>\n
But while it attempts to remove regulatory uncertainty around crypto, Malta is still exercising tight control over the businesses that establish themselves on the island.<\/p>\n
Last week the government enacted three bills into law that are designed to encourage the establishment of legitimate cryptocurrency businesses on the island: The Virtual Financial Assets Act (VFA), regulating ICOs, cryptocurrency exchanges, and wallet providers, etc, the Malta Digital Innovation Authority Act (MDIA Act), outlining the duties and responsibilities of the Authority to ensure DLT platforms are credible, and the Innovative Technology Arrangement and Services Act (ITAS Act), which is concerned with the setting up of exchanges and other companies operating in the cryptocurrency market.<\/p>\n
These acts reflect the high-level principles of the European Union, says Secretary for Digital Innovation Silvio Schembri, clarifying that although the island might be taking the lead in updating regulations, it is still exercising tight control over operations.<\/p>\n
\u201cWe have also based these laws upon 3 basic principles – market integrity, consumer protection and industry protection […] The ultimate aim is to bring legal certainty to an environment that is currently unregulated,\u201d he says.<\/p>\n
As such, the regulations include measures designed to protect investors\u2014including a prohibition on insider trading, market manipulation and misleading ads or ICO whitepapers. New companies raising capital through ICOs will be required to publish white papers that outline a detailed description of the entire project, and make their financial history public.<\/p>\n
One early beneficiary of the supportive approach of the island\u2019s government is Malta-based STASIS – which has recently launched the EURS, a stablecoin backed by the Euro.<\/p>\n
According to STASIS CEO Gregory Klumov, the company hopes the EURS will bridge the gap between traditional finance and the crypto-economy. "While cryptocurrency trading is currently dominated by individual and retail investors, EURS will pave the way for institutional investors to enter the game and begin allocating capital\u2014that’s what’s needed to take the industry to surpass the trillion dollar mark."<\/p>\n