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Why Malta is the Top Crypto-friendliest Country in the World

by Alan Daniel
, Why Malta is the Top Crypto-friendliest Country in the World

Malta is known as the blockchain island. The country has established itself as such by providing friendly to crypto and blockchain oriented companies.

As such, it is home to Binance and other prominent companies within the cryptocurrency and blockchain sector.

Key figures within the Maltese nation have stated that have become a compelling country for crypto enthusiasts because they have provided a framework and the right tools to companies within the blockchain segment.

So how does Malta provide a better landscape for cryptocurrency entrepreneurs? Let’s find out.

Cryptocurrencies Are Not Legal Tender

While Malta is a cryptocurrency friendly nation, the country does not recognize cryptocurrency as legal tender, according to ComplyAdvantage. Relevant agencies within the country might have jurisdiction on some cryptocurrencies while others will remain unregulated.

Regulatory Framework For Blockchain

Passed on July 24, 2018, the Malta Digital Innovation Authority Act institutes the Malta Digital Innovation Authority (DIA) and will act as the leading agency for distributed ledger technology platforms. The act provides the parameters of the DIA, allowing it to take action to provide DLT platforms with a certain sense of credibility.

Fosters Cryptocurrency Exchange Companies

Malta passed the Innovative Technology Arrangement and Services Act. The law would clarify parameters for exchanges and other service providers that seek to create a home within the Maltese nation.

As such, many cryptocurrency exchanges such as Binance, OKex, and BitBay call the country home. The country expects to see an increase of cryptocurrency trade processing in excess of $30 billion.

Digital Assets
The country has issued another law, the Virtual Financial Assets Act, which would establish parameters for ICO deployment, cryptocurrency facilitators, and other parties within the system, such as digital wallet hosts.

Cryptocurrency enthusiasts would be pleased to know that resident foreigners are not subject to income taxes on foreign-sourced capital gains.

According to the latest reports from Finance Malta, the Maltese nation will not levy capital gains taxes on cryptocurrencies. The country will serve cryptocurrency traders, exchanges and other parties within the cryptocurrency ecosystem by minimizing their tax burdens.

In addition to minimization of taxes on cryptocurrency trades, the country has significantly decreased its corporate tax rates for global companies to below 6%.

Moving to Malta
Becoming a citizen of Malta is not a difficult process due to its Global Residence Program, it requires a bit of cash and meeting a few other requirements.

A Continued Commitment To The Blockchain Sector
Leaders within Malta have pledged to foster blockchain technology going forward. The country does also host events such as the Delta Summit to bring cryptocurrency leaders and participants together and foster growth within the sector.
Malta is well on its way to becoming a “global trailblazer in the regulation and support of blockchain-based businesses and fintech companies.”

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