Ethbits chose to locate in Malta for a multitude of reason, but undoubtedly the main motive was for the regulatory framework that has been implemented by the MFSA (Maltese Financial Service Authority). In this piece we will summarise the main reasons why Ethbits chose Malta over other locations around the world.
Summary Key Points
- VFA licence,
- Past Experience
Ethbits will be abiding by and adhering to the VFA (Virtual Financial Services) license with the MFSA. As a company we are allowed to operate under transitional rules for the new VFA regulation and will eventually be authorised and regulated by the MFSA. As mentioned in previous posts, this license is a comprehensive license very similar to a MFID category 4. It will allow Ethbits to operate a regulated exchange across the whole of Europe. We are able to market and operate in member states and we are also able to take on Traders and provide them with a regulated framework to work under. This means that Malta is world leading in the regulatory framework for exchanges and is striving to support businesses’ innovation.
One of the main benefits for the regulation is that it is simple to follow in that the MFSA have been firm, but fair, with the regulation. The legislation permits bring about the need for VFA agents to supervise a company’s progression. In our opinion this is just the level of government intervention that the space needed in order for it to evolve and meet expectation for the revolutionary technology.
The unique selling point for Malta’s regulatory framework is that it provides Ethbits the ability to offer certain services known as VFA Services. The stand out service; Investment advice is crucial as it will allow our customers to receive valuable advice around potential investments. This is a big game-changer for cryptocurrency as is gives the space a more mature impression to new investors.
Firstly, the culture in Malta is a very mixed one, with a very Italian Mediterranean feel with British influences. This makes Malta a very attractive holiday destination for many every year, which contributes to Malta biggest industry. Secondly, the fact that Malta is part of the EU is very appealing to Eastern companies looking to get a foothold in the crypto/blockchain space, as we know some of the largest amounts of trading by volume size takes place in Japan and South Korea. However, primary reason does come down the aforementioned.
So, the Maltese I-Gaming industry has really excelled in recent years due to strong government regulatory implementation. The island has become a global hub for online gaming rivaling the biggest sector on the island; tourism. The MFSA attempts to replicate the success of the I-gaming industry, predicting the Blockchain- VFA regulation to overtake this success.