The Maltese Blockchain Regulation & Coinagenda
Coinagenda Conference Malta 2018
Coinagenda Malta was all about the Maltese blockchain regulation. Malta, with a population of just under 450,000, is attempting to position itself as a pioneer in regulating the blockchain space.
Malta Blockchain Regulation
Dr. Abdalla Kablan was the speaker to open the conference. Dr. Kablan is a renowned expert in the field of distributed ledgers. He advises governments on matters related to the strategic development and utilization of technology, Fintech, and Blockchain/DLT technologies. Also, he is the chairman of the MSE Blockchain Committee. Dr. Kablan is a fascinating speaker. His presentation broke down the efforts that the Maltese government is making to regulate the crypto and blockchain space fully. With the assistance of advisors such as Dr. Kablan, the Maltese government is pushing towards legislation that will establish a regulation for blockchain in the country.
Delta Summit 2018
Dr. Kablan also invited attendees to the upcoming Delta Summit that will take place on 3rd-5th October 2018. DELTA Summit will be Malta’s official platform from where to promote Malta as a blockchain and digital innovation center of excellence. The next day Malta’s Prime Minister Dr. Joseph Muscat addressed Coinagenda’s audience describing the framework that is designed by the Maltese government in Blockchain/DLT Technologies. The prime minister also noted Delta Summit and extended his invitation to the audience.
Regulation Case Study
Let us review an example to illustrate a project a blockchain regulation can facilitate. On the 19th of July 2018 Berlin Based company Nuefund has announced its partnership with the Malta Stock Exchange and Binance. Neufund is aiming to allow companies to get funding using ETO. ETO is Equity Token Offering. Neufund’s equity tokens give those with limited capital access to micro-ownership. An ETO, therefore, is intended to be a legal and secure alternative to the current ICO funding method. One can argue back and forth what is considered a “Dead Coin.” However, asset-backed funding is becoming the preferred method for promoting crowdfunding that is token based. Although this is only a personal opinion, the idea of ETO seems to be leveling the playing field between Venture Capital funds and the Public. You may refer to our post “ICO Pool a Whale of a Time for Small ICO Contributors” for more on the topic.
Governments Blockchain Regulation
For the next following days, many esteemed speakers took to the stage. Indeed, the speakers all obtained knowledge in their field and raised hard questions regarding the state of blockchain regulation or the lack of it. However, there is a consensus among the majority of speakers that governments and institutional adaptation are slow.
One speaker, we wish to point out is Mr. Timothy Enneking. Mr. Enneking introduced himself as the Managing Director of Crypto Asset Management fund. Mr. Enneking described governments maturity to blockchain as slowly getting to the point of what he described as “understanding.” He used a graph to demonstrate the cycle governments go through in the adaptation of blockchain. He displayed that the first stage is “panic.” He explains that the accelerated industry growth drives governments to place a ban on it. Banning crypto or ICOs allows governments to buy time and assess its meaning and impact. Eventually, governments start coming to terms and understanding of it. Once governments understand the technology and its potential or flaws, they start the adaption phase. In other words, this is when the legislative framework kicks in.
Slow Institution Blockchain Adaptation
Whether you agree with Mr. Enneking or not it is fair to say that the industry has grown faster than governments are embracing it. Corporate crypto banking was one topic repeatedly addressed. Companies inability to exchange large sums of cryptocurrency still seems to be a significant issue in the blockchain space. That is true for companies that have completed their ICO and now wish to run their business. It also poses a problem for VCs, Hedge funds, Angel investors, and significant investment firms investing in the space. The concept of jurisdiction diversification kept coming up as a piece of advice by several members of the panels. The Maltese regulation might aid ease the difficulties posed by banks when it comes to corporate crypto exchange and banking.
The Times They Are A-Changin’
If we consider how rapid the blockchain space has grown, it can be expected to come with growing pains. We’ve witnessed an enormous amount of money pouring into the industry in the past few years. We’ve also seen some less pleasant circumstances around ICOs such as pump and dump tactics, and fraud activity associated with it. In December 2017 we’ve witnessed Bitcoin peaking over eighteen thousand USD, and drop down to nearly six thousand USD in July 2018. It is a volatile market. It lacks cross-border regulation. Some governments ban it while several others embraced it. One thing is for sure; one can’t deny its spread and the growing interest in it.
Conclusion and Thanks
The Coinagenda conference was extremely informative. The conversations, panels, and presentations were on point and relevant. It is worth noting that the discussions commended the drop in the number of speculators. The Maltese regulation framework is fresh air breezing through an industry that at times is scrutinized or misunderstood. Overall attendee’s excitement from the Maltese regulations was apparent.
We wish to take the opportunity to thank Mr. Michael Terpin and his team for putting this conference together. We hope to see more governments making an effort to regulate the market in their jurisdiction. We wish more governments make way for blockchain projects and help breed new companies and innovations. It will benefit us all if we allow new startups with great teams to get funded equitably.
Crypto Venture Capital Investment