Practice Areas > Investment Services, Fintech & Capital Markets > Blockchain & ICOs > Crypto Exchange Licensing >Why Malta
A home for your
Crypto Exchange
A modern, efficient, cost-effective legal and tax framework
Malta was among the first countries in the world, in October 2018, to establish a comprehensive technology neutral regulatory framework for crypto exchanges, making the blockchain island the ideal location for your Malta crypto exchange.
Geographic location and economic stability, an educated and skilled English-speaking labour force, a modern and efficient legal and tax framework and competitive operational costs are just a few of the reasons why Malta should be your choice.
Status of Onshore Finance Centre
Malta currently operates a full imputation system of taxation, whereby tax charged to the company is imputed to the shareholder in the event of a dividend distribution. This means that a shareholder will not be charged tax twice on dividends. Shareholders are entitled to claim refunds of up to six sevenths of tax charged to the company. The result of such refunds is that the effective total tax paid is of 5%. This regime is fully complaint with international tax standards and with EU legislation.
Coupled with the above, the considerations that Malta enjoys a sovereign credit ‘A’ rating, an excellent economic track record, political stability and has become part of the eurozone, confirm Malta’s attractiveness as an onshore financial centre, making it ideal for the establishment of your Malta crypto exchange.
EU Membership
As an EU Member state, Malta benefits from the application of the internal market principles relating to the freedom to provide cross-border services within the EU.
In effect, subject to licensing requirements in other EU member states, this implies that online services provided from Malta may not be prohibited in other Member States unless such restrictions are justifiable. The EU is taking a restrictive stance with respect to limitations to the freedom to provide services.
Professional & Efficient Regulator
With an ever-increasing work force, the Authority is fully equipped to deal efficiently with licensing applications and with ongoing monitoring. However, it does not limit its role to policing activities. Furthermore, the Authority operates an ‘open door’ policy whereby prospective or licensed operators may discuss an issue upfront with the responsible officials.
Availability of Human Resources
Malta boasts a flexible, reliable and highly productive multilingual workforce. The number of university student graduates has more than tripled in the last decade with close to 3,500 students graduating each year who are sure to make your Malta crypto exchange a successful venture.
Advanced Technical Infrastructure
Malta has an established state-of-the-art telecommunications infrastructure capable of hosting and delivering round the clock connectivity. Ancillary services such as online payment processors are also available. The World Economic Forum has recently ranked the Maltese Government as the second most successful government in promoting the use of ICT.
In November 2009, Malta ranked first amongst EU member state when it comes to IT and e-government. The 2009 EU e-Government Benchmarking has shown Malta making an outstanding leap in the delivery of e-Government services. In fact Malta has topped the country ranking in both Online Sophistication and Fully Online Availability by achieving the maximum possible score (100%), making it the best performing country in the EU.
Malta has reached maximum possible score (100%) in the ‘One stop Shop’ and ‘User focused portal design’, whilst attaining second and third place respectively in ‘User Satisfaction Monitoring’ and ‘Usability’.
Active Blockchain & Crypto Industry
The Fintech Unit within the Malta Financial Services Authority was set up with the aim of creating a sector-specific point of reference for blockchain and crypto operators, thus offering direct access to operators who may wish to address several issues with the benefit of collective experience.
High Standard of Living
Not only is Malta in the ideal position in the Mediterranean in its proximity to mainland Europe and North Africa, but it offers a very good quality of life, low criminal rates, excellent health services and diverse entertainment and sport facilities.
How we can help
Gonzi & Associates, Advcocates, has extensive experience in this field and is able to provide specialised assistance to your business at all stages of the Malta Crypto exchange licence application procedure, including:
- Malta Company incorporation and registration;
- Drafting of legal opinions on the legal nature of your service and technology employed to determine the applicable legal framework;
- Collection & preparation of documentation necessary for submission of an Malta crypto exchange licence application, including internal policies;
- Assistance in the drafting of the company’s business plan for submission with the licence application;
- Drafting website T&Cs relevant to your services;
- Assisting in the engagement of Key Functionaries, including VFA Agent, Systems Auditors, Money Laundering Reporting Officers (MLROs), director/s, auditors, and so on;
- Providing post-registration follow-up assistance, including advising on applicable annual compliance exercises;
- Registration of your trade mark in the Malta trade mark register and the register of the European Union Intellectual Property Office as necessary;
- Providing general legal advice and assistance as required.