World’s Best Countries for Cryptocurrency Companies and Blockchain Businesses
Though blockchain has seen a great deal of development in the past year, there are still some key challenges faced by the technology. One such challenge is determining which countries will flourish the most – especially in light of the new MasterCard and Visa requirements.
Tal Ron of Tal Ron, Drihem and Co. recently commented on his perception of the future of such projects in light of the changes. The credit card entities’ new rules apply to financial institution that release funds to customers. MasterCard, specifically, added several new systems as well, such as Foreign exchange trading, contracts for difference, and initial coin offerings. Due to these new systems, merchants that participate in such activities cannot use the MasterCard network without legal authorization in their jurisdiction.
To promote compliance, MasterCard now requires registration with the MasterCard Registration Program. Registration will show that the users are aware of the new requirements. Those who fail to register will be fined due to BRAM violations. Compliance with the registration process is twofold. First, companies must provide evidence of legal authorization to perform credit-related activities. Evidence includes a copy of a merchant license or a legal opinion from attorney accredited by STEP or the IMGL. The second requirement is effective controls certification.
A few jurisdictions that are contenders for such activities are Singapore, Malta, and Estonia. Some suggest Gibraltar as well, but such a location has become a less popular option after Brexit. As for Switzerland, another contender, Estonia seems to be an even better option due to internet penetration rates. The country also has a e-residency program, it ha adopted a cryptocurrency regulatory framework, and many companies move to Malta for ICOs. At this point, Malta is one of the most forward-thinking countries in terms of cryptocurrency.
There are three new laws in the country, which include the Innovative Technology Arrangement and Services Act for setting up exchanges; the Virtual Assets Exchange for regulating ICOs and cryptocurrency exchanges, and the Malta Digital Authority to certify DLT platforms. These new laws are just some of many considerations that companies need to take into account when choosing where to set up shop. Of course, any decision must be made with the proper information and legal advice – which should be sought from someone who has a foundation and form of knowledge in the area.