Bitdeal is the leading Cryptocurrency Exchange Development Company that offers A to Z cryptocurrency & blockchain-related business services such as Blockchain Development, Cryptocurrency Wallet Development, Cryptocurrency Exchange Clone Scripts, etc.
We chose Malta because of its crypto-friendly nature and good economic growth. let's Explore more about Malta's crypto market and regulations
Malta, the beautiful island in Europe, heartily welcomes Cryptocurrency and blockchain-related business. Now popularly known as ' The Crypto Island' and become the hotspot for huge business people and Crypto enthusiastic.
Why Malta?
Many countries like the USA, Canada, Germany, France, Japan have accepted cryptocurrencies legally but those government has laid very strict rules and regulations. So, Starting a Crypto exchange is not an easy thing in those countries, but in the case of Malta, the legislation is more favorable for the business people.
Maltese government believes that the blockchain and cryptocurrency development business will bring a huge impact on the enhancement of over all economic growth of the country.
Here is a video that describes why all cryptocurrency companies choose Malta for their Business.
Cryptocurrency Regulations and Legislation in Malta
Virtual Financial Assets Act(VFAA)
On 1st November 2018, The government of Malta has introduced Virtual Financial Assets Act to regulate Cryptocurrency and blockchain-related business. It is an act that has been passed to regulate the Virtual Financial Assets Transactions. This law is applicable to all kinds of crypto developers such as Wallet companies, Exchange websites, Blockchain Companies, etc
Digital Innovation Authority(MDIA)
The Primary Purpose of this Authority is to regulate the innovative technologies and it is responsible for providing license for all kinds of the organization from start-ups to enterprises This Authority initiates and executes cryptocurrency governing acts.
Innovative Technology Arrangements and Services(ITAS)
This act is considered as the backbone of the Cryptocurrency legal act and it is established to meet the legality, integrity, and transparency.
Source : The MDIA Act
Cryptocurrency Trends in Malta
Malta is the first country in the world that establishes the regular framework for blockchain and cryptocurrency. On July 4, 2018, the Maltese parliament has passed three bills in the law and made it a rememberable day in Malta's history.
Malta has a different way of approach, while many countries look in economical perspective and malta's vision is in strong technological aspect, a Tech-first view. and laid flexible laws for evolving technologies.
Mr. Joseph Muscat, the prime minister of Malta, told that Malta is the pioneer in the regulation of Blockchain and Crypto related business.
Malta's dignitaries told that Malta will not allow the participation of the European Union in any kind of taxation policy.
In 2017, Malta has installed its first Bitcoin ATM in the city Sliema that enables users to buy bitcoin and the user can check their balance in the e-wallet by using QR codes in the smartphone itself.
The World's largest Cryptocurrency Platform in the world Binance is relocated to Malta in the year 2018 from china.
Malta's government has planned to conduct the AI and Blockchain submit in the month of November 2019.
Cryptocurrency Taxation in Malta
In Malta, there is no tax for the cryptocurrency exchange and if one sells cryptocurrency and gains income from it then they are subjected to income tax at the rate of 5%.
The Maltese Value Added Tax (VAT) Department follows the European Court of Justice in Hedqvist (C-264/14) so, exchanging fiat for cryptos and cryptos for fiat currencies are not taxable and will be excluded from VAT constraints.
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