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Malta has become a new cryptographic hub providing much needed banking support for cryptocurrency activities. Since it was not possible to make changes to bank regulations because of the risk associated with cryptocurrencies, the Maltese prime minister mentioned the currencies as a way to advance the encrypted businesses on the island.
Will not intervene in the bank regulation alleges PM
According to the report published on the Chinese site CNgold.org, it does not seem that everything goes smoothly for the encrypted affairs to the "blockchain island" of Malta. All their hopes of obtaining banking support were in a good mood when Joseph Cuschieri, an official of the Malta Financial Services Authority (MFSA), promised to act against the conservative attitude of the bank towards the cryptocurrency companies . But now everything seems to have hit a roadblock when the Maltese Prime Minister Joseph Muscat has proposed to the encrypted companies to switch to stable currencies.
"Obviously we will not intervene in banking policies because they have to deal with issues such as correspondent banks and risk assessments," said Muscat while addressing the press. "Our job as a government is to create this new market and not let it form a vacuum in. Some platforms are already banking in cryptocurrencies and new sectors are created, such as stable currencies, which are considered safer. it's the way the industry is evolving and we're not seeing it now [to such developments] positively. "
"Also, whenever people come to Malta to do business in the regulated cryptocurrency sector, I always urge them to maintain their previous banking arrangements."
Muscat's interference comes very soon after MFSA Chief Executive Joseph Cuschieri promised action in light of the conservative approach of banks to cryptographic societies.
"It is quite clear that Malta needs more banks to participate in the development of our economy, particularly in the digital space and FinTech," said Cuschieri. "I am not happy with the current situation on various fronts and doing nothing is not an option for me." Our banking strategy and policy review to be published next year will address this challenge in a holistic way and we will consult with all the stakeholders before all decisions are taken ".
These comments come as a slight quip for the encrypted business since, from early 2018, Malta has focused on building an ecosystem that improves and is more friendly with companies associated with crypts and blockchains. Striving to transform the Mediterranean nation into "Blockchain Island", the government has opened its doors to the blockchain and other so-called distributed ledger technologies. Malta has always worked with the vision that the island could become a paradise for cryptocurrencies like Bitcoin. Also on the legislative front, in July 2018, the Maltese parliament had approved three draft laws to establish a regulatory framework and guide innovation in blockchain-like technologies in the hope that these laws would attract foreign financial technology companies to settle in country.
The only thing that could not turn in its favor was banking regulation and bank support as it would have to address a number of issues such as the corresponding bank and risk assessment. And now it does not seem to happen soon.
Will cryptographic deals turn into stable currencies or will Malta lose its blockchain friendly status? Let us know your opinions on the same
Summary
Item name
Stablecoins The road ahead of "Blockchain Island" says the prime minister of Malta
Description
Malta has taken all possible steps to support cryptographic businesses so that it can advertise itself as a "blockchain island". The only thing he could provide was bank support for cryptocurrency businesses. Because the change in banking regulations was not possible due to the risk associated with cryptocurrencies, the Maltese prime minister seems to have pushed the encryption activities on the island to turn into stable currency assets.
Author
Nilesh Maurya
Publisher name
Coingape
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