Nations are Competing to Attract Crypto Entrepreneurs
With the recent boom in the number of blockchain and cryptocurrency startups, governments are fighting to attract crypto entrepreneurs to set up their bases in their country. Malta, Gibraltar, and Bermuda are one of the hottest places to establish a crypto business with respect to the facilities they provide.
These countries are up against bigger European countries like France and Switzerland to bring in as many crypto companies as possible.
Innovative Initiatives to Facilitate the Growth of Crypto Industry
Governments in Bermuda, Gibraltar, Liechtenstein, and Malta, are rapidly making legislation and strategies to take advantage of the regulatory uncertainty in the U.S and other countries and get crypto enthusiasts to incorporate their businesses. According to NYTimes, hedge funds are often incorporated in the Cayman Islands whereas online poker companies are incorporated in Gibraltar and Malta.
The article also stated,
“In Malta, the government passed three laws on July 4 so companies can easily issue new cryptocurrencies and trade existing ones. In Bermuda this year, the legislature passed a law that lets start-ups doing initial coin offerings apply to the minister of finance for speedy approval.”
Bermuda has also entered the game to skyrocket the growth of its fintech industry by introducing the “Digital Asset Business Act” earlier in May 2018, which aims “to regulate persons carrying on digital asset business and for the protection of the interests of clients or potential clients of persons carrying on the business of digital asset business.”
Even earlier the government has proposed the bill to regulate initial token offerings which await the assent of the governor.
Gibraltar also released the first decentralized ledger technology framework to protect cryptocurrency investors in the British Overseas Territory, as reported by the Gibraltar Financial Services Commission (GFSC). According to the framework,
“The DLT framework positions Gibraltar as a jurisdiction which facilitates innovation, whilst ensuring it continues to meet its regulatory and strategic objectives, and understands the modern need for robust and speedy interaction with regulators in this fast moving area of business.”
More interestingly, Gibraltar United, a football club also became the first club to play its players in cryptocurrencies.
Liechtenstein, the sixth smallest country in the world is also at par with other players in the race. As recently reported by Forbes, Yanislav Malahov, the founder of Aeternity and the “Godfather of Ethereum,” told Forbes about the ease of incorporating a cryptocurrency business. He says,
“They’re not putting any financial incentives in place, but they’re making it really easy to incorporate a cryptocurrency business. You can open a company without a bank account, just by using Bitcoin or Ethereum”
Big European Countries like France and Switzerland are also equally competing to get a share of the crypto-pie.
Bruno Le Maire, the French Finance Minister also admitted his negligence of the crypto sector and is now willing to establish France as a hub for cryptocurrency and blockchain companies to flourish. He says,
“I was a neophyte a year ago, but now I’m passionate. It took me a year. Let us show a lot of pedagogy with our fellow citizens to make France the first place of blockchain & crypto-active innovation in Europe.”
Coming on to Switzerland, the fact that it is highly crypto-friendly is evident from the fact that Ethereum os incorporated in the Swiss city of Zug. The city apparently welcomes risk and is not afraid of losing as it also completed its blockchain voting trial in July this year. In addition to this, the city also allows citizens to accept cryptocurrencies as payments or Residency Services. Seeing the rapid development tells everyone why the city is called the “Crypto Valley.”
Apparently, many countries have now realized the golden opportunity to speed up the wheels of their economic growth by taking advantage of one of the most exciting technological advancements in history. Consequently, it is imperative for all the countries to put in regulations to legalize the industry so as to avoid brain-drain and loss of precious human capital.