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70 Percent of Malta's Crypto Startups Go Belly-Up

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Fri, 04/24/2020 - 18:46
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Alex Dovbnya
A whopping 70 percent of Maltese cryptocurrency startups haven’t even requested VFA licensing process, signifying the demise of the “Blockchain Island”
70 Percent of Malta's Crypto Startups Go Belly-Up
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70 percent of Malta-based cryptocurrency startups have failed to request a virtual financial asset (VFA) license, according to Malta Today

None of the companies that did start the licensing process are yet to get the green-light from the Malta Financial Services Authority (MFSA). Until then, they are not allowed to provide any services in the country.       

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The report also states that many companies that were close to the government hit the skids shortly after their launch. Case in point: blockchain platform Omnitude, which was supposed to enhance the country’s transportation, but ended up closing shop due to funding problems.

Former Prime Minister Joseph Muscat famously wanted to turn Malta into “Blockchain Island,” which could be the next Dubai. However, the new administration doesn’t appear to be keen on his crypto dream.

Earlier this year, the MFSA issued a warning that crypto behemoth Binance wasn’t authorized to operate in Malta. The exchange never applied for a VFA license. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.