Blockchain Tech Will Be the Basis for the Registry of Companies in Malta
- Malta’s Registry of Companies will be recorded on a blockchain-based system.
- The International Monetary Fund (IMF) suggests that blockchain tech creates unnecessary risks in money laundering and terrorism financing.
In Malta, there is a public registry called the Registry of Companies, and it contains the official documents and related information. The agency recently established itself as an independent entity of the Malta Financial Services Authority at the end of 2018. Now, the company is seeking out a way to organize their information, as they plan to use a blockchain-based system.
The goal of establishing this independent entity is that the Registry will have stronger internal management structure of the data. Silvio Schembri, the Parliamentary Secretary for Financial Services, Digital Economy, and Innovation, stated that the use of blockchain technology will provide greater efficiency, while “lessen[ing] unnecessary bureaucratic procedures.
Blockchain technology will open the door for new services that the current system just cannot handle without it. In December, Malta released a declaration in collaboration with seven of the European Union member states, which encourages the public to use distributed ledger technology (DLT) in the area. The document outlines multiple industries that can benefit from the use of blockchain technology, like a land registry, shipping, customs, and other services.
In January this year, the use of blockchain tech in Malta was creating a problem locally, as a mission from the International Monetary Fund (IMF) commented that the fintech was creating multiple risks in money laundering and terrorism financing for the country. The IMF issued several recommendations to fix these issues, like implementing more sanctions and gaining a better understanding of the risks that blockchain comes with. The breach of regulatory measures was also cited in the recommendations.
Still, there’s hope in blockchain, as the Prime Minister of Malta has voiced a positive stance on the fintech. The Prime Minister believes that there is a potential for corporate, political, and civic systems to benefit from blockchains implementation, adding that it could ultimately solve “decades-old problems.” With that in mind, blockchain has been the motivator behind Malta’s work to “launch itself as a ‘Blockchain Island,” he stated.
The Prime Minister states that Malta became “the first jurisdiction” that has managed to establish regulations for blockchain technology.