Although the media has been highlighting the increasing regulatory pressures faced by crypto-related companies this year, not too much attention has been given to countries that have a more friendly approach, and that consider the blockchain and digital assets useful for the national economy.
Cryptocurrency valuations have been beaten down by the weakening sentiment and now the entire market is struggling to form a bottom.
Bitcoin managed to cap the downside around $30,000 and until it succeeds in embarking on a new major bull run, the public’s attention will probably focus on crypto-friendly countries. Malta, surprisingly, is one of them, with an interesting story.
Malta’s crypto-friendly attitude
Malta is one of the small islands in the Mediterranean, yet it has been under the radar of crypto investors and companies over the past few years.
Exchanges and blockchain projects operate there and since the country is part of the European Union, these companies have access to one of the largest markets in the world.
Binance is one of the leading exchange platforms operating in Malta, after it moved operations away from Hong Kong and China, due to increased regulatory scrutiny.
Thanks to its very progressive approach towards digital assets, Malta is now among global leaders in terms of favorable regulation. Crypto is not yet legal tender in the country but is recognized by the government as a medium of exchange, a unit of account, and a store of value.
Also, the Maltese government has already enacted a trio of acts related to digital assets: MDIA, ITAS, and VFA, along with other blockchain-related legislation.
There is no specific tax applying to crypto, nor VAT. The country has a strategic plan for regulation and thus far, it does not aim to enforce AML crypto laws, although the MFSA is overseeing exchanges operating in the country, trying to prevent money laundering and financial crimes.
Implications for the cryptocurrency market
A mixed global picture with regards to how cryptocurrencies should be treated is not favoring a stable growth of the industry. Crypto price volatility remains elevated, creating a proper environment for trading.
The emergence of trading platforms like Winiford has facilitated access to the markets for many people around the world, as they offer crypto-related derivatives.
In the case of Winiford, the company offers professional services, including proprietary software, asset diversity, and swift trade executive. There is also an on-site chat which people can use to get in touch with a representative 24/6.
The bear market, which continues to drag the sentiment, has been around for a few months, reducing crypto trading activity. However, when using Winiford, traders can take advantage of short-term price movements, using margin and attractive costs.
It is not yet certain whether other countries will eventually adopt the Maltese approach towards cryptocurrencies. In the meantime, traders can use trading services to generate returns on bullish and bearish trends, relying on providers that offer personalized conditions.