About 70% of the crypto and blockchain startups that have completed the first step of the registration process in Malta do not manage to obtain a license to offer financial services in the country.
Leon Siegmund, a board member of Malta's Blockchain Association, said:
"The regulation in Malta came out of a mindset of technocracy, rent-seeking and EU-obedience. Exactly the opposite of what’s needed."
Malta announced back in 2018 its regulation of the crypto industry, claiming at the time that it is one of the most crypto friendly in the world. However, the registration process is quite expensive and the regulations are too strict.
The Malta Financial Services Authority (MFSA) received 340 applications for crypto licenses last year, however, none of them has been approved so far.
In addition, the regulator published last week a list of 57 companies that had applied for a license but, disregarding the regulations, had not completed the whole registration process by November 2019.
Only 26 startups, mainly cryptocurrency exchanges, are still aspiring to obtain a license.
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