Cryptocurrency is a widely used virtual/digital currency. It is a medium of exchange for most countries now, with most forms being Bitcoin and Ethereum. This is known as cryptocurrency exchanges. People can anonymously and comfortably trade without any need for agents such as bankers or accountants.
Using cryptocurrencies is not only faster, but it also eliminates the chance for credit card fraud. It is a worthwhile investment.
Malta recognises Cryptocurrency, and it’s, therefore, a hotbed for crypto companies. The currency can be used to pay for goods and services, just like the monetary currency. Let’s take a look into the advantages that crypto companies have by operating in Malta.
Cryptocurrencies are Accepted in Malta
The Maltese law is very lenient in Cryptocurrency matters. The law accepts people to trade in virtual currency. It is also equivalent to the monetary currency. If any company wishes to participate in cryptocurrencies, they can freely do so without seeking authorisation from the Malta Financial Services Authority (MFSA).
However, you would still need to inform the MFSA if you intend to operate as a collective investment scheme such as a financial institution. Only once you have permission can you then use Cryptocurrency.
Additionally, cryptocurrencies are not defined as investment instruments; hence no need to acquire licensing when investing.
The Currency is Free from Government Influence
The most considerable benefit of Cryptocurrency in Malta is that it is free from governmental influence. Comparing with traditional currency, you realise that the conventional currencies are distributed by the government and regulated by government-appointed financial institutions.
Cryptocurrencies are created via a mining process, which means that the miners have a better grasp or control over the currency. Again, cryptocurrencies are harder to counterfeit than traditional money. Companies like E&S by Christian Ellul and Karl Schranz can enjoy enhanced peace of mind.
The Currency is More Economical to Manage
Since the transactions are algorithmically generated, they do not need any middlemen for transactions.
The currency is recorded by a blockchain database, which in short means that transaction charges involved in traditional currencies are avoided. They are more manageable, and anyone can understand how the blockchain systems operate. Usually, the processing for traditional currencies must be done by a third party who needs to be paid.
Within Malta, a Mediterranean island, there are a lot of blockchain companies. A lot of the blockchain technology can be found here and why it is a very known place to many digital entrepreneurs. Since the Maltese government understands cryptocurrency and blockchain, it is one of the reasons as to why it is called a blockchain island.
Traders Enjoy Anonymity
Leaving your details on the traditional currency’s database makes you easy bait for phishing and cybercrimes. With cryptocurrencies, you can anonymously send and receive virtual currency. Once the currency has been mined, it is stored in a digital wallet. Compared to a wallet in your pocket, this wallet is protected and you are the only one with access to it.
The balance and transactions to and from your wallet can be conveniently monitored through a protected blockchain database. The main identification is through a series of alphanumeric characters for each user.
Following the anonymity, users cannot be identified during the trade. This makes the digital wallets less susceptible to hacking. Additionally, the currency is stored in the blockchain network, which requires no third party to access. Further, your digital wallets are optimally protected through secure public and individual or private keys.
Cryptocurrencies pose a huge advantage to traders. It is gradually gaining popularity worldwide and has potential especially following the endorsement by renowned FinTech companies.
Malta recognises the value of Cryptocurrency and has made significant strides in becoming a crypto-economy. With a high number of Cryptocurrency companies in Malta, the competition to win clients is stiff. It is a great place to grow your Cryptocurrency prowess.