Malta to Become ‘Epicenter’ for Security Token Financing

Wilfred Michael 

Wilfred Michael

News reporter

06 August 2019,
Malta to Become ‘Epicenter’ for Security Token Financing

Malta’s emergence as the ‘blockchain island’ will not stop with the nation providing understandable regulations to entice crypto and blockchain-related companies to set up shop within the European country.

Malta Stock Exchange Chairman, Joseph Portelli said in a recent interview at the South EU Summit that the nation has an eye on becoming the 'epicenter' for security token financing globally.

Portelli spoke convincingly regard Malta’s exploration of blockchain technology and how the invention could help improve the capital markets, which has remained almost the same for a long time.

He highlighted that the implementation of blockchain technology “makes the clearing and settlement process for equities, for capital products, so much faster and easier.”

Citing a specific example, Portelli noted that blockchain can simplify the process of proxy voting which until now remains cumbersome. He also mentioned that instead of going through an “expensive regulatory filing process” to raise capital, firms could use the tokenization features of blockchain technology to raise funds quickly.

The Malta Stock Exchange Chief described these capabilities of blockchain technology as a paradigm shift going from one extreme to the other. He then revealed Malta's ambitions with the security token industry which includes becoming home to most security token exchanges by 2020 and eventually becoming an epicenter for the new fundraising mechanism.

"Malta will have the highest concentration of security token exchanges in the world, even more than the United States,” Portelli said in the interview.

Meanwhile, the latest thoughts shared by the Malta Stock Exchange Chief comes amid recent reports that the EU is growing weary of the country's soft stance for cryptocurrency-related businesses.

In June, the EU, as we reported, told Malta to beef up its anti-money laundering (AML) laws, in a bid to better control their rapidly growing cryptocurrency ecosystem.

Before the warning though, Malta published new guidance on how citizens can spot fake crypto projects and more recently released a consultation paper containing proposed rules for security token offerings (STOs).


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