The Malta Independent, a local news outlet, has reported that Malta is looking to set up its Registry of Companies on the Blockchain network. This report was made on the 8th of May.
Malta’s Regidtry of Companies To Be The First On a Blockchain System
The Registry of Companies is a registry which contains the official documentation and information with regards to new and existing companies in the country. The registry was formerly under the MFSA (Malta Financial Services Authority) but broke off and became a separate entity late last year. According to the news outlet, the newly established entity will be based on a Blockchain system.
Through establishing itself as a separate entity, the Registry of Companies is looking to strengthen its internal management structure. According to the report, Silvio Schembri, the Financial Services, Digital Economy and Innovation Parliamentary Secretary, said that the Registry of Companies will be more efficient and have fewer cumbersome bureaucratic procedures through the increased investment in IT.
Schembri stated that the Registry will be operating on a system which will be able to manage all the processes undertaken by it. He went on to say that through this new system, new services will be able to be provided, services which have not been provided through the current system. This will make the agency the first in the world to employ Blockchain technology he added.
Blockchain An AML Compliance Violation Risk?
Late last year, seven member states of the EU (European Union) revealed a declaration which supports the utilization of Distributed Ledger Technology in the region. Malta was among the states which released the declaration. According to the declaration, the services which stand to be improved through the technology include shipping, company, registry, education, healthcare, transport and mobility among many others.
In the wake of the declaration, a mission from the IMF (International Monetary Fund) earlier this year, in January, concluded that the development of Blockchain technology in the island nation had resulted in increased risks of terrorism financing and money laundering in its economy. According to the report made by the Times of Malta on the 24th of January, the IMF came to this conclusion after visiting the island nation.
The IMF identified Blockchain, remote gaming and financial sectors as some of the areas where it has the most concern about when it comes to the possible risks of violating the AML (anti-money laundering) compliance. Also included as an area of concern was the scheme run by the government where an individual can be granted citizenship on account of their investments in the country. In its report, the IMF included a number of recommendations including the application of more sanctions by the authorities and their need to increase their understanding of the risks that the technology may come with as well as the breaches in regulation.
Blockchain Technology Is The Future Says Malta’s Prime Minister
Malta’s Prime Minister, Joseph Muscat, has come out in defense of both Blockchain technology and digital currency stating that they are the inevitable future of money.