Open a cryptocurrency company in Malta

Technology is impacting every industry and the banking sector is no exception. One of the most innovative developments so far is digital currency—popularly known as a cryptocurrency. Digital money solutions are increasingly gaining a lot of popularity especially when it comes to online transactions. They are also a very lucrative business venture to invest in.
 
Just like other European countries, prospective cryptocurrency entrepreneurs in Malta have an obligation to undergo registration—using any of the applicable forms of business enterprise offered by the Commercial Law. Upon satisfaction of all requisites, the entity has to act in accordance with the newly established cryptocurrency legal instruments that specify certain provisions pertaining to all the activities associated with the digital currency. 
 
Legislative statutes in Malta
The government of Malta has approved into law, in conjunction with the Malta Financial Services Authority (MFSA), the first and foremost legal provisions that govern and control matters regarding cryptocurrency-based endeavors. These laws have been in effect since early 2018 and are collectively known as the Digital Innovation Framework. 
 
Selecting the correct business type for a cryptocurrency entity in Malta
At the outset, the entrepreneur should choose a company set-up under which the cryptocurrency entity will undertake its trading activities. The two most preferred options for this type of commercial firm are the sole proprietorship and the private limited liability company (LLC), bearing in mind that digital money entities are formed in a small to medium scale.
 
Registration of a cryptocurrency company in Malta
Both an indigenous entrepreneur and a business owner from another country can formulate a cryptocurrency company by preparing the required incorporation documentation and consequently filing them with the Trade Register. It is imperative to realize that entities dealing with cryptocurrencies are not considered as monetary or financial services firms and as such, the usually fitting stipulations that relate to investment companies, for instance, do not affect these virtual money companies.
 
Licensing a cryptocurrency company in Malta
The licensing procedure is under the jurisdiction of the MFSA for interested parties wishing to delve into the cryptocurrency space in Malta. The license is granted after the entity successfully completes the test set by the MFSA. This therefore means that a prospectus has to be filed and it must consist of truthful and precise details relating to the virtual token. 
 
The progress of cryptocurrency in Malta
Malta is gradually turning into a renowned financial powerhouse across the European continent owing to the conducive environment accorded to overseas investors. This serves as one of the major factors that have influenced the increasing acceptance and fame of cryptocurrency in Malta
 
Taxation of cryptocurrency companies in Malta
Although there is no particular legal statute that addresses taxes pertaining to cryptocurrency transactions, entities operating in Malta in the virtual money industry incur corporate tax and as a result, benefit immensely from many other taxation immunities and deductions. Investors from other countries should remember that the corporate tax stands at an invariable rate of 35%. Conversely, this corporate tax has a total imputation scheme that ensures that this preset rate lowers significantly. 
 
Reasons for establishing a cryptocurrency company in Malta
Malta was one of the foremost nations not only in the European Union but also on the entire Earth to pass a legal instrument that deals with cryptocurrency issues.  Thus it officially recognizes the pertinence of a virtual currency system and its corresponding duty in the future of financial dealings. 
 
Entrepreneurs seeking to form cryptocurrency-based entities can pick numerous kinds of business endeavors to carry out, some without the obligation to procure any type of licensing from the governing MFSA body. Recently, provisions have been put forth to assist enterprises wishing to take part in gambling activities where cryptocurrency is used to pay for bets made.
 
Get in touch with our erudite law professionals in Malta to obtain tailored assistance on legislative specifics and advice on the best company structure as regards to cryptocurrency-centered businesses. But that’s not all! You can also get expert level help on enterprises in other industries as well.