Minister Schembri said that the first project is spearheaded by the Department of Commerce within the Ministry for the Economy and Industry. This will ensure that the digitisation of official documents relating to industrial property rights (trademarks, designs, patents) is registered on protected digital networks. Therefore, new ideas, designs or patents need to be protected by trademark registration. This way, the developer can rest assured that the ownership, title, and business value of that idea will belong to them. This system ensures that the original records are always in the owner’s possession, who can then control how they are used.

The Minister said that the second project concerns a proposal that is spearheaded by the Ministry for Gozo. He explained how Gozo is known for genuine products made on the island itself. Through this project, which is being carried out between the Ministry for Gozo and the MDIA, using DLT, Gozitan products will be digitally labelled during the manufacturing cycle and the process will be documented within the system. All information will be digitally certified by being linked to physical labels or stickers carried by the products themselves. When the consumer scans the QR Code of the product using a smartphone, he receives proof and assurance that the product was actually made in Gozo, and that there was no form of falsification.

The third project will see the strengthening of the Planning Authority through DLT. Here, Minister Schembri explained that the level of security on such sensitive documents will be bolstered. This will improve the transparency of the process, because if there is a change in the information in the Planning Authority’s data system, this change will be flagged due to a mismatch with what has been registered in the public blockchain system.

Minister Schembri explained how the blockchain, contrary to what one might think, goes beyond cryptocurrencies. Blockchain is a technology that can be used in many ways, as we are seeing in these three new services. Blockchain itself is a technology that, due to the way it is built, offers security, increased efficiency, visibility and immutability – which means that transactions recorded on blockchain cannot be tampered with. These three projects, which are all built on blockchain, testify to the benefits that this technology brings in transparency and verification. He mentioned how Malta has also made great strides in the virtual currencies sector as, in a statement issued by the Malta Financial Services Authority (MFSA), it announced that, to date, there are already 40 licensed companies or service providers operating in the sector of virtual financial assets, while 306 other applications are being processed.

Minister Schembri mentioned how an international private sector fair will be held in our country next week. Around 600 companies will be participating, ranging from start-ups, gaming companies, blockchain, artificial intelligence and others. This shows that the private sector is welcoming the government’s policy on these sectors.

MDIA Chief Executive Kenneth Brincat said that, “Through this public call for the implementation of the proposals announced today, we are seeing a growing awareness of the benefits of these innovative and emerging technologies”.

The post Three new projects with blockchain technology launched in the public sector first appeared on The Malta Business Weekly.

Steve Tendon, in an email to members of the Blockchain Island Club (BIC), which he had founded back in 2018, slammed the Maltese government and decided to take down the BIC community site and LinkedIn Group.

“As you know, I literally coined the term ‘Blockchain Island’ in 2016 while drafting the National Blockchain Strategy for Malta. The term became a synonym with Malta and it’s drive for Blockchain Technologies. Or, at least that was the intention,” he writes.

“The Maltese Government disregarded most of the recommendations in the strategy document, and paid only lip service to the development of Blockchain Technologies. Instead, the initiative turned into a wild crypto adventure for the entire country.”

Tendon said that a never ending “tragedy of errors” followed. 

“Now, with all the grievous events, criminal acts and wide-spread corruption of the Maltese Government, and the recent FATF grey-listing of the country, the very term ‘Blockchain Island’ has become a moniker of the most nefarious significance. I cannot bear to be even remotely associated with all of that – and therefore the decision to take down the BIC.”

Tendon also said that he is “withdrawing from any further public roles in the Blockchain space, as I would always be associated with that Blockchain Island.”

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Approximately 70% of the crypto and blockchain startups which completed the first stage of the application process failed to obtain a Maltese financial services license, according to data published by the Maltese financial regulator last week. 

Malta’s crypto regulations were billed as the most innovative in the world, when they were announced in 2018.  But despite the nation’s crypto-friendly image, and “Blockchain Island” hype, the application process is expensive, and regulations are too stringent, industry insiders told Adriana Hamacher from Decrypt. 

“The regulation in Malta came out of a mindset of technocracy, rent-seeking and EU-obedience. Exactly the opposite of what’s needed,” said Leon Siegmund, a board member of Malta’s Blockchain Association and founder of Bitcoin Club Malta.

The Maltese Financial Services authority received 340 preliminary crypto license applications last year. But, to date, it has not issued a single licence.

Malta’s cryptocurrency flop

The MFSA published the names of 57 companies which applied for a license but who did not, as mandated, complete the process by November 2019. 

Among them is the Palladium Exchange, owned by Maltese insurance and asset management firm Global Capital. The company’s initial coin offering was billed as the world’s first initial convertible coin offering, and investors were promised that they could convert tokens into company shares at a later date. 

The ambitious plan was to raise €150 million and invest half the proceeds to buy a controlling interest in a European bank, and another 35% to develop a crypto exchange.

Palladium did not reply to request for comment, and it’s not known what happened to the scheme.  

In fact, the fate of 257 of the 340 initial applications is also unknown, because only 26 startups—predominantly cryptocurrency exchanges— are still contenders in the application process, according to the MFSA. 

And they don’t include Binance. The world’s biggest exchange by market cap was once the jewel in Malta’s crown. But, in February, the MFSA controversially announced that Binance no longer had any licensable activity in Malta. 

Blockchain Island: Under a Cloud

But there’s another reason why Blockchain Island failed to live up to its original promise.

Malta has long attracted European Union scrutiny over money laundering, its “cash for passport” schemes, and—most recently—the murder of journalist Daphne Galizia Caruana, who linked government ministers to the Panama Papers.

The authorities dragged their heels over the investigation. But in November 2019, the man who allegedly ordered her murder, Maltese billionaire buisnessman Yorgen Fenech, was apprehended. New evidence linked him to the government, and forced a wave of resignations.

Malta’s disgraced prime minister Joseph Muscat was among them. He made blockchain one of his government’s futuristic goals, and the technology has fallen out of favor along with its principle enthusiast. 

Even Malta’s new economy minister, Silvio Schembri has recently changed his tune. 

In Muscat’s government, Schembri was parliamentary secretary for the digital economy, and oversaw Malta’s groundbreaking cryptocurrency legislation. He encouraged businesses and workers to settle on Malta while—for three years in a row—the Mediterranean island enjoyed the fastest growing economy in Europe.

But Schembri doesn’t talk about crypto these days, and   his welcome smile is looking strained. In March, as the covid-19 pandemic hit Malta, he warned foreign workers that, if they run into financial difficulties, they must immediately leave the island, and should not expect state aid. Malta’s substantial expat community  took to Facebook to complain, and the minister later apologized for his remarks.

Meanwhile, crypto license applications continue to be vetted by the MFSA, but not too many people are applying for them these days.

The post 70% of “Blockchain Island” firms have given up first appeared on The Malta Business Weekly.

The two parties signed a Memorandum of Understanding (MoU) on the issue during the Digital X, Europe’s cross-sectoral digitalisation initiative. T-Systems will offer its business customers a “Blockchain Ecosystem” from 2020.

Malta Enterprise and T-Systems expressed their commitment to making the benefits of the compliant and rapidly deployable blockchain ecosystem available to Malta-registered companies as soon as possible. The two entities added that they are convinced that blockchain networks provide higher security and control than any other technology.

In November 2018, Malta became the first EU member to provide a formal legal framework for blockchain and distributed ledger technology (DLT) solutions. Ever since, Malta has often been referred to as the “Blockchain Island”.

“We are delighted to offer this unique platform to Blockchain developers,” said Katharyn White, Chief Marketing Officer of T-Systems, “It will increase the success of Blockchain projects and accelerate the impact of Blockchain solutions on the market,” she added.

Kurt Farrugia, CEO of Malta Enterprise, also welcomes the cooperation: “This collaboration with T-Systems will give a further competitive advantage for Malta over other jurisdictions while adding more value to the already established Maltese Blockchain ecosystem,” said Malta Enterprise CEO Kurt Farrugia. “Companies using T-System’s Blockchain Ecosystem services will have a certification for their project by the Malta Digital Innovation Authority (MDIA). The relationship with T-Systems will continue to build Malta’s reputation as a solid Blockchain jurisdiction,” he added.

The planned collaboration includes:

• Provision of an enterprise blockchain platform as part of the Malta Innovation Hub, which will support the Ethereum, Hyperledger, and Corda DLT platforms;
• Provision of a validator service, allowing Mata-registered companies to rapidly deploy validator nodes on some of the largest and most significant proof-of-stake blockchains in production;
• Support for the comprehensive solution audits recently announced by the Malta Digital Innovation Authority;
• Access to T-Systems’ security solutions;
• Joint marketing and training activities, including seminars in key European cities to provide a rapid adoption path for companies wishing to launch blockchain projects quickly, securely, and in full compliance.

The post Malta Enterprise teams up with T-Systems on blockchain ecosystem first appeared on The Malta Business Weekly.

OKEx believes that the recent addition of Ecosystem Partnership can contribute to building a stable blockchain ecosystem, as well as offers a great opportunity to connect to different networks and portfolios under the blockchain space.

“We are excited to participate in this new initiative by Klaytn. We have a strong faith to the team and the blockchain technology developed upon solid reliability and significant stability,” said Andy Cheung, Head of Operations of OKEx.

“Exchanges and projects itself should work together to define and adopt standards that will promote digital asset adoption globally. At OKEx, we are always keen to work with market players in expanding the market and bring in quality projects in accordance with market needs, and I believe this indicates a good start,” Mr Cheung added.

“We are delighted to welcome the global top exchange OKEx to join Klaytn,” said Chase Choi, the Head of Business at Ground X. “As Asia’s number one blockchain platform, we will further solidify and expand our ecosystem together with OKEx,” he added.

Klaytn partnerships come in various forms: Governance Council, Ecosystem Partners, Initial Service Partners, KLAY BApp (Blockchain Application) Partners, and Investors. The project’s partners currently include giants such as Samsung Blockchain, IDG Capital and Shinhan Bank.

Developed by Kakao’s blockchain arm, Klaytn is an enterprise-grade and service-centric blockchain platform with a mission to combine the features of both public and private chains via an efficient hybrid structure. Kakao is one of the market-leading messenger services in South Korea.

The post OKEx joins Kakao’s Klaytn blockchain ecosystem first appeared on The Malta Business Weekly.

As part of the partnership, SiGMA Group will host exclusive BitAngels networking events in conjunction with the AI & Blockchain Summit events, taking place in Malta this November and in Manila, Philippines, in June 2020.

BitAngels is a community of blockchain investors, entrepreneurs, and professionals with local events hosted in major cities to promote growth and connectivity in the blockchain industry through in-person and online collaboration. This network aims to accelerate blockchain adoption globally by connecting stakeholders through its events.

“With Eman’s extensive business relationships in Malta, ‘the Blockchain Island’, and in Manila, Philippines, he makes the ideal City Leader to broker new blockchain partnerships and introductions across the BitAngels network,” said Michael Terpin, co-founder of BitAngels.

“BitAngels will be instrumental in bringing together the very best that the blockchain sector has to offer,” said Mr Pulis. “Combined with SiGMA Group’s mission to bridge the blockchain sectors from East to West, we expect to supercharge the development of blockchain technologies for the good of the world.”

As part of the partnership, SiGMA Group Founder and CEO Eman Pulis also becomes a BitAngels City Leader for the soon-to-be-launched BitAngels Manila Chapter, while SiGMA Group COO Oliver De Bono takes on the role of City Leader for the forthcoming BitAngels Malta chapter.

The post SiGMA Group partners with BitAngels Investor Network first appeared on The Malta Business Weekly.

SiGMA is taking the B2B event open for the iGaming sector’s online suppliers, operators, affiliates, regulators and blockchain businesses to Manila, expanding the Maltese event overseas.

The Manila expo will concentrate on the importance of bridging the business division between East and West, addressing topics such as the regulatory environments in different territories, the integration of blockchain and new emerging technologies and the bandwidth problems for mobile gaming, among others, the group says.

Furthermore, figures from Global Gambling Statistics 2019 show that seven of the top ten locations for gambling revenue based on visitors are in Asia (including Australia). For instance, in Macau, revenue is expected to reach as high as US$53b by 2022, according to the press release sent to BM. 

“The opportunities for growth in Asia are increasing exponentially year on year, and the time is right to cement new and existing relationships between the gambling industries in both East and West,” said Kate Chambers, MD Clarion Gaming.  

“To combine the expertise of Clarion courtesy of the world-famous ICE brand and SiGMA ensures both the land-based and iGaming sectors will find synergy in Manila in 2020. This is an exciting time as we extend the reach of the ICE brand following the launch of ICE Africa in 2018 and ICE North America in May 2019,” Mr Chambers added. 

“As we take the SiGMA brand to global markets, we are proud to facilitate the biggest gaming expo to bring East and West together. It is unprecedented for two such established events to join forces in Asia this way, so this will be an unmissable calendar event amongst C-level gaming executives, whether they have existing business activity in Asia or are looking to expand their operations in the Far East,” said Eman Pulis, Founder and CEO of SiGMA Group.

The post SiGMA teams up with Clarion Gaming for Manila show in 2020 first appeared on The Malta Business Weekly.

OKEx introduced perpetual swap trading last year, along with its new risk management system that their customers benefited from. The group offers hedging and arbitrage instruments like futures and perpetual swaps, in order to help traders optimize their trading strategies.

Since the adoption of the new risk management system, OKEx noted that the exchange has recorded no clawbacks for the futures and perpetual swap markets, even under volatility.

Furthermore, the donation to the perpetual swap insurance fund is expected to provide an extra layer of protection to the customers, ensuring their safeguard.

“We strive for developing a healthy trading environment. No clawback has occurred on OKEx perpetual swap since its launch. We introduced a new risk management system to strike a better balance between avoiding early liquidation and maximizing traders’ benefits,” said Andy Cheung, Head of Operations of OKEx.

“We believe the $4.5m donation can give extra confidence for customers trading on our platform. Developing a robust crypto marketplace where everyone can trade freely in a fair manner is something that has always been our mission,” he added.

“Customer satisfaction is the core of our service. The key to delivering the best user experience to our customers is security. Our founding members and executives are all tech and internet experts, allowing us to lead in product and technology development,” continued Mr Cheung. “As believers in bitcoin and the blockchain, we are dedicated to bringing more positive changes to the existing financial system, bridging the traditional and crypto markets with our technologies.”

The post OKEx donates $4.5m to perpetual swap market insurance fund first appeared on The Malta Business Weekly.

“This year the government has once again increased the allocated budget by 30% to the tune of €800,000 for the Student Placement Programme,” said Mr Schembri. “This is proof of the government’s commitment to give an opportunity to our youths to have hands-on working experience in the industry of the future. This preparedness can only be achieved however if we are able to build on the academic prowess of our youth and provide them with opportunities such as these,” the minister said.

“The number of companies requiring employees having knowledge of emerging technologies such as blockchain, artificial intelligence, internet of things, and virtual reality is always on the increase,” Mr Schembri added. “This is an opportunity for you all and focusing your studies in these areas will surely contribute for you to have a successful career.”   

In addition, MITA’s Head of Strategy and Business Emmanuel Darmanin underlined that MITA, together with employer partners, has been able in the last five years to offer over 1,600 placements in all sectors which have provided exposure to the Information and Communications Technology (ICT) and ICT using industry, as the press release says. 

“In line with the various initiatives related to emerging technologies, this year’s event has been created with a direct focus on some of these technologies. I encourage to also make use of MITA’s New Emerging Technologies Lab, experience the practical use of these technologies, and above all make the most out of your Student Placement Programme,” said Mr Darmanin. 

Moreover, the students took part in workshops related to virtual reality, artificial intelligence (AI), and blockchain amongst others through which the winners were awarded Delta Tech Week. 

During the event, it was also announced that the government official blockchain event Delta Summit will be transformed into the Government Tech Week between 30 of September and 6 of October 2019 and will cover different areas such as AI, IoT, blockchain, eSports, game development and space research.

The post MITA student placement to host 380 students in 2019 first appeared on The Malta Business Weekly.

When the fundraiser is complete, TokenMarket will aim to exit the United Kingdom’s Financial Conduct Authority (FCA) sandbox as a fully-regulated investment platform, and authorised to help innovative and growing businesses raise capital through STOs.

Moreover, TokenMarket says this will be one of the United Kingdom’s first sales of tokenised equity to everyday investors and “the rigorous approval process demonstrates TokenMarket’s commitment to effective regulatory oversight as well as stringent investor safeguards,” according to the press statement.

Therefore, TokenMarket is aiming to offer access to retail investors, reflecting the company’s commitment to providing global investors with the opportunity to back ambitious, early-stage startups and small and medium-sized enterprises (SMEs).

STOs allow investors to record equity on a distributed ledger technology-based (DLT) platform under existing securities regulations. As such, TokenMarket shares will be registered in the blockchain and offer the same rights and protections that investors would expect from ordinary shares, TokenMarket says.

Since its establishment in 2016, TokenMarket has helped to raise £240m for over 30 startups and has expanded across Dubai, Malta and Finland. Having secured restricted FCA permissions to carry out this equity issuance, TokenMarket looks forward to leaving the FCA sandbox as a fully-regulated investment platform, for users to research, trade and invest, as the press release says.

“I am delighted to confirm the launch date of our upcoming STO and to continue to progress in the FCA’s sandbox. At TokenMarket, we strive to democratise investment opportunities, empowering everyday investors to get involved in exciting, early-stage startups. The FCA sandbox is rigorous and world-leading; it is critical to work with financial regulation, to ensure investor protection and rights,” said Ransu Salovaara, TokenMarket CEO.

Once TokenMarket leaves the FCA, the following companies will start to issue STOs on the platform:

• Cryotech Nordic, which presents innovative cryotherapy systems and solutions away from using expensive liquid nitrogen chambers and reducing costs and opening up a once niche industry into a much larger and more accessible retail market.

• Dovu, which works with a growing number of automakers, public transport operators, and mobility startups. This company intends to create a circular economy for smart mobility, where consumers are directly rewarded for the valuable data and actions and they contribute to their mobile service providers.

“Following the completion of our STO, TokenMarket will aim to leave the FCA sandbox as a fully regulated global investment platform. It’s incredibly invigorating to see the countless businesses ripe for industry disruption and innovation; we have a strong pipeline of companies keen to launch STOs. I am proud that TokenMarket will be able to play a pivotal role in driving this business growth,” Mr Salovaara added.

The post TokenMarket announces STO, plans to quit UK sandbox first appeared on The Malta Business Weekly.