Malta financial regulator did not issue a single license on last year's applications from crypto startups
In 2018, Malta was considered one of the most cryptocurrency and blockchain-friendly jurisdictions. However, the licensing process on the “blockchain island” turned out to be very expensive, and the rules too stringent.
“Regulation in Malta took place at the crossroads of technocracy, rent-seeking behavior and EU obedience. The exact opposite of what needed to be done, ”Leon Sigmund, board member of the Malta blockchain association and founder of the Bitcoin Club Malta association, said in a comment to Decrypt.
Last year, the Malta Financial Services Authority (MFSA) received 340 applications from cryptocurrency and blockchain startups, but to date, the regulator has not issued a single license.
The MFSA published a list of 57 companies that applied but did not complete the licensing process by November 2019.
Only 26 startups - mainly cryptocurrency exchanges - are still candidates for a license from MFSA. The fate of the remaining 257 applications is unknown.
MFSA continues to accept applications for “crypto licenses”, but today they are already being submitted by far fewer startups.
In 2018, Malta was considered one of the most cryptocurrency and blockchain-friendly jurisdictions. However, the licensing process on the “blockchain island” turned out to be very expensive, and the rules too stringent.
“Regulation in Malta took place at the crossroads of technocracy, rent-seeking behavior and EU obedience. The exact opposite of what needed to be done, ”Leon Sigmund, board member of the Malta blockchain association and founder of the Bitcoin Club Malta association, said in a comment to Decrypt.
Last year, the Malta Financial Services Authority (MFSA) received 340 applications from cryptocurrency and blockchain startups, but to date, the regulator has not issued a single license.
The MFSA published a list of 57 companies that applied but did not complete the licensing process by November 2019.
Only 26 startups - mainly cryptocurrency exchanges - are still candidates for a license from MFSA. The fate of the remaining 257 applications is unknown.
MFSA continues to accept applications for “crypto licenses”, but today they are already being submitted by far fewer startups.