Malta’s banks jeopardise plans for a ‘blockchain island’

Malta, crypto- and blockchain-friendly, faces reluctance from local banks to work with industry representatives. This is reported, citing the country’s finance minister Clyde Caruana, by Lovin Malta.

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The minister noted that the concept of the \”blockchain island\” was under threat due to banking scepticism. Traditional financial institutions dismissed the technology at an early stage of its development and are not keen to invest in the new experience required for the sector to thrive.

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Karuana noted banks’ passivity toward Malta’s other plans, including support for medical cannabis. He said that the lack of local skilled personnel hinders the emergence of new industries in the country.

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“If we want to continue attracting investments to Malta, we must ensure that we have all the necessary qualifications,” the minister concluded.

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In 2018 Maltese authorities adopted crypto-friendly regulation to foster a conducive environment for the development of the industry. In October that year, Maltese Prime Minister Joseph Muscat, during a speech at the 73rd session of the UN General Assembly, called digital assets the money of the future.

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In 2019, many crypto companies reported difficulties opening bank accounts in Malta — financial institutions cited high risks and refused to service.

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As of April 2020, 70% of crypto industry representatives had not filed licence applications to operate in the Maltese jurisdiction.

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