YOVO, the world’s first blockchain mobile phone network has that confirmed it will be moving its headquarters to Malta, with an investment of €20 million and a team of thirty members. With this mobile network company, you will be able to buy your tokens with over 40 different types of crypto currencies.
The last few years will be remembered as those which saw the introduction of Bitcoin to the general public. Although cryptocurrencies have been discussed in the media for a while, it was only recently that the terminology became commonly used and more importantly understood, by the average person on the street. Here, we will look at the way cryptocurrencies taxes are treated in Malta for the purposes of income tax and the reasons a person may invest in cryptocurrency.
You’ve probably heard of cryptocurrencies such as Bitcoin or Ethereum whilst you’ve been going about your everyday life but do you really know what they are? These are two of the most popular cryptocurrencies on the market, they are basically a digital currency which utilizes encryption techniques in order to enhance security during the trading process. Cryptocurrency in Malta is sometimes referred to as virtual currency, is made up of a number of virtual coins which can be generated using a process called mining, this involves solving a series of complex mathematical algorithms. Coins can be used to pay for goods and services in a similar way to any other form of electrical payment using a blockchain platform, which is a peer-to-peer technology that ensures transparency and accountability during trades.
Malta asset-backed tokens are among the best uses of blockchain technology to real-world assets, increasing liquidity and price consciousness for illiquid assets, with the possibility of freeing up trillions.
Until relatively recently, the tiny island nation of Malta was perhaps best known as a favourite holiday destination for many a European tourist. In fact, this Mediterranean hotspot is still said to host three times as many tourists as actual Maltese residents at any one time. However, while the hotels and beaches are still bursting at the seams with sun-seekers, Malta’s economy has been steadily diversifying and expanding in interesting new directions. One such direction has been a movement into the digital realm, with Malta becoming a pioneering player in this respect. As attention on cryptocurrencies increases so has the discussion surrounding regulation. As such, cryptocurrency regulations in Malta are a hot topic.
Malta asset-backed tokens are among the best uses of blockchain technology to real-world assets, increasing liquidity and price consciousness for illiquid assets, with the possibility of freeing up trillions.
The conference was opened by Parliamentary Secretary, Silvio Schembri who expressed the opinion that the Maltese Government was planning to launch a new Digital Innovation Authority Bill (DIA) which will operate as the only regulator for ‘Innovative Digital Technology’. The Technology Arrangements and Services Bill (referred to henceforth as TAS) was also mentioned by Dr Schembri, as was the keenly anticipated Virtual Currency Act. The triumvirate of bills will form the foundation of the Maltese Blockchain and Cryptocurrency Regulation.
Virtual currencies, also known by the name crypto currencies, are an entirely digital form of money. They are unregulated by any financial authority, instead being entirely under the control of their developers. National and international banks do not oversee the use of virtual currencies, as there is no physical aspect to them, and they are therefore, not considered to be legal tender.Transactions in a virtual currency involve them being shown on an online platform, which is called a BLOCK. The person sending the money must first purchase Bitcoins, on a platform known as an Exchange. The new BLOCK is then broadcast to all the other users of the network, and is added to the current blocks, making a blockchain. This completes the transaction, with no intermediate banks or transfer fees involved.The Exchanges on which Bitcoins are purchased will eventually all be approved and awarded the relevant licences in the appropriate financial jurisdictions. At present, the Bitstamp exchange has had full licensing since 2016, which means it can be used within the European Union. Regarding security, the blockchain is held over thousands of different networks, making it more difficult to hack than the one central system which holds all the details of one bank's customers and accounts.
The last few years will be remembered as those which saw the introduction of Bitcoin to the general public. Although cryptocurrencies have been discussed in the media for a while, it was only recently that the terminology became commonly used and more importantly understood, by the average person on the street. Here, we will look at the way cryptocurrencies taxes are treated in Malta for the purposes of income tax and the reasons a person may invest in cryptocurrency.
Dr. Scott Stornetta is one of the two founding fathers of the blockchain concept. With his working partner, Dr. Stuart Haber, he developed the idea in 1991, describing it in peer-reviewed journals, and taking out a number of patents. When Satoshi Nakomoto wrote his famous Bitcoin white paper, he referenced Drs Haber and Stornetta.
Bitbay is a cryptocurrency exchange based in Poland which trades Bitcoin, Litecoin and Ether against currencies such as the euro and the dollar. Founded in March 2014, the company has found its growth hampered by the attitude of Polish banks which have proved unwilling to cooperate with the exchange. In this, they’re following the lead of the Polish government which is uncomfortable with crypto. In fact, the Polish financial regulator launched a campaign online recently, warning people of the possible risks of investing in, or using, crypto.
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A cryptocurrency exchange has the toughest requirements from the VFA services regulated in Malta. When holding clients money, VFA’s and cryptographic keys the regulation takes great care of protecting users. Let us guide you through the complete registration of registering your cryptocurrency exchange.
The VFA agent is central in conducting crypto and blockchain related business in Malta. The agent is the bridge between your business and the authorities. Our experience as VFA agent will guide you through the fit and proper tests, financial instruments tests and ensure your business remains compliant.
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