We've all seen the movies and read the sci-fi books about machines and robots taking over the world. But how close are we to that becoming a reality? Smart contracts are becoming more and more commonplace in our society. Will they replace lawyers, accountants, and other officials completely or is this still just a fantasy?
Hong Kong-based cryptocurrency platform Binance has now migrated to Malta due to a recent ICO ban enacted by China. This move will essentially transform Malta into a "blockchain island"; a hub destined to transform the current cryptocurrency marketplace.
Modern day entrepreneurs have creative ways of raising money like crowdfunding, which is steadily gaining dominance. ICOs operate under similar principles in that investors are offered shares in a currency that is still in development. In exchange, they contribute the more popular digital currency such as Ethereum and Bitcoin. Fiat currency like the Euro and USD can also be used.
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 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.
Currently there is ample development in the Maltese blockchain industry. Changpeng Zhao, the billionaire that is behind one of the largest cryptocurrency companies in the world, Binance, is behind the planning of the new decentralised bank in Malta. The bank will be called Founders Bank, and there is a reason to it. One of the main features that makes the bank unique and special, is the fact that it will not belong to any single entity or individual.
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.
