Malta's Rise to Crypto Prominence, E.U. Proximity Helps Island-State Lead Blockchain Revolution

Malta is emerging as a prominent force in the world of cryptocurrencies.

The European island-state has surprised many this year with its continual positioning as a "Blockchain economy," and is now edging over Gibraltar, another economy banking on blockchain for a resurgence, due to the latter's shaky relationship with the European Union.

The British colony faces widespread concerns over its regulatory future, and with the already unregulated grey market of cryptocurrencies, entrepreneurs are seemingly seeking options that provide the least resistance and legal scrutiny for their crypto businesses.

Investors and speakers at last week's Delta Summit in Malta voiced their support for Malta's foothold in the European single market and stated countries like Gibraltar, even famed Switzerland, lack a similar advantage.

Crypto.com CEO Kris Marszalek noted that Malta is staying in the European Union, a feature that is "Not going to change."

Malta's push in the cryptocurrency world has been case study-worthy.

In September, Prime Minister Joseph Muscat highlighted Malta is poised to fulfill its "Blockchain Island" dream by setting up fast-track licenses and audit solutions in partnership with "Big Four" accounting firm PwC. The country further considered lowering its 5 percent tax rate for crypto businesses while the Maltese Stock Exchange explores launching digital asset trading on its bourse.

Muscat also noted the "Decades-old problem" of inefficient, corrupted administrative systems serves as the impetus to position Malta as a self-styled blockchain island.

The trio is reportedly forming a Founders Bank in Malta with the aim of proving financial and banking services to crypto startups.

Malta's success is overshadowed by money laundering concerns and relatively high crime rates, with the European Commission preparing a binding guideline for Malta's financial regulator to enforce on crypto businesses after the country's unlikely jump to the top.