Malta and Bermuda are orienting their local business environments to suit and attract Crypto firms. Lacking huge populations to fuel economic growth or massive national resources for exports, these tiny nations are heavily dependent on small fintech firms, tourism and now Crypto firms to fuel their economic growths.
What A Crypto Haven Looks Like
To understand the concept of a business haven, it is vital to make comparisons with what some policymakers in different nations have done to attract various businesses. There are a number of illustrations to demonstrate the models.
Firstly, to attract tourists and be a visitors’ hotspots, nations like Russia have various methods such as issuing long-term visas like the World Cup Visa card (which has been extended to the end of 2018) to ensure that the market environment is friendly. Secondly, Switzerland is a banking haven that is regulated by a privacy principle where depositors can escape scrutiny, sanctions and operate secretive accounts. Lastly, nations like Malta and Gibraltar have developed laws for gambling making it fully legal, exempting the gaming firms from taxes and letting their shops run with no preconditions.
On the same lighting, Crypto havens are safe business environments for blockchain firms and startups. The policymakers of these countries guarantee protection from discrimination, tax exemptions, a certain regulatory environment and various incentive.
However, this fact does not mean that Crypto firms will completely vacate established markets, rather, they will shift their management and administration headquarters to Malta and Bermuda.
These new developments are as a result of the respective governments passing laws that seek to normalize issuance and exchange of Cryptocurrencies in the case of Malta. In this country, the Cabinet drafted three bills that were passed by Parliament and transformed Malta to a Crypto haven; The New Digital Innovation Authority Bill, the virtual Assets Bill to regulate ICOs and Crypto exchanges, and the Technology Arrangements and Service Bill. Silvio Schembri, the Parliamentary Secretary for the Digital Economy is tasked with overseeing the implementation of these laws.
And for the case of Bermuda, blockchain startups wishing to raise capital through Initial Coin Offerings (ICOs) are mandated by law to apply to Minister of Finance for fast-tracked authorization.
Repositioning The Nations For Future Prospects
Bermuda and Malta have realized that the Cryptocurrency markets are taking over the world and blockchains will be the future norm just like the Internet and Cars have been in the past. E David Burt, the premier of Bermuda believes that creating a Crypto haven will reposition Bermuda on the global map, attract the future billion-dollar worth companies and earn the country the much-needed revenues from taxation and local area investments.
Tackling The Challenge
Malta and Bermuda are however concerned that Crypto exchanges and blockchain pose security issues, due to exposure to hacking, fraud, and misuses for illegal activities. In the case of Malta, the Malta Digital Innovation Authority has been set to authorize blockchains and ICOs.
This news is critical to blockchain firms that face hostile business environments in various countries.