During the conference, experts will discuss the impact of these technologies, as well as, debate the various current and future applications of blockchain and AI. The conference will also look at the relevant legal frameworks, with a particular focus on Malta.

“We are delighted to be hosting the ‘Blockchain & AI: Where are they taking us?’ conference,” says Mark Azzopardi from Working Town Events. “Blockchain and AI are set to change our lives — but what do we know about these technologies and what can we expect their impact to be? Have they already had a profound and irreversible effect? This useful and enjoyable conference hopes to answer these questions and more, for those looking to deliver services related to these sectors as well as those who just wish to learn the basics,” Mr Azzopardi adds.

The two-day event will include talks, forums and panel discussions with experts including Helen Burrows, Aviya Arika, Soulla Louca, Godfrey Baldacchino, Joseph Anthony Debono, Claudia Borg, Gordon Pace, Stephanie Fabri, David Galea, Philip Maurice Mifsud, Luis Pallares, Abigail Mamo, Béatrice Collet, Denise De Gaetano, Luis Pallares, Helga Pizzuto, Mark Mallia, Darren Parkin, François Grech, Leonard Bonello, Malcolm Falzon, Ian Gauci, Damian Mifsud and James Muscat Azzopardi.

Working Town Events, an Azure Rock Partners brand, will host the conference in partnership with Blockchain Island Magazine, Zeta, Meta Luminor, the Academy of Business Leaders, Write Me Anything, and Coin Rivet. The event is also accredited by the Malta Institute of Accountants for 8.25 hours of Professional Development in terms of the Accountancy Board’s CPE Scheme.

Tickets for the conference are available online.

The post Working Town Events conference to explore blockchain, AI first appeared on The Malta Business Weekly.

“Back in December of last year, Malta spearheaded an initiative that brought on board Cyprus, France, Greece, Italy, Portugal, and Spain, where together we agreed to promote and work further in the blockchain and DLT sphere, share our expertise and knowledge, and most importantly enhance further our cooperation in this new emergent industry,” said Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri.

“The signing of that declaration was clear evidence of a sense of acknowledgement of this emergent industry. Today’s initiative of a memorandum of understanding takes us a step further, it marks our commitment, as the seven EU member states, to establish a framework for the sharing of best practices in the design and application of DLT at a governmental level. This framework will help us as a region, to achieve the maximum potential of such technologies and enable us to enhance the daily lives of our citizens,” the junior minister added, tagging the MoU as a “historic milestone”.

Under the agreement, Malta, Spain, France, Italy, Greece, Portugal and Cyprus commit to exploring the possibility to cooperate on cross-border distributed ledger technologies projects and to share best practices in the application of distributed ledger technologies, according to the DOI press release. The MoU has established a framework for the sharing of best practices in the design and application of distributed ledger technologies at a governmental level between the countries.

The post Malta signs MoU on DLT cooperation with six EU countries first appeared on The Malta Business Weekly.

OKEx expects the new platform to allow users to access the real-time data of OKEx’s futures and perpetual swap markets of nine mainstream tokens including bitcoin (BTC), litecoin (LTC), ether price (ETH), ether classic (ETC), ripple (XRP), EOS, bitcoin cash (BCH), bitcoin SV (BSV) and tron (TRX), according to a press release sent to Business Malta.  

Additionally, OKEx expects the new feature to help its customers to get a grasp of market trends, including long/short positions ratio, basis, open interest and trading volume, buy/sell taker volume, Top Trader Sentiment Index, and top trader average margin used. 

The new data platform is also seen to provide additional insight that would help customers better identify market trends and develop their own trading strategies, the press statement says.

“Derivatives trading requires a steeper learning curve, as it involves the use of margin and leverage. Once we realized that there isn’t really much data available in the market to help users analyze market trends, we decided to build a tool that can benefit our users,” said Andy Cheung, Head of Operations of OKEx. 

“That’s why we launched this big data platform, and we are proud to say that we are the first in the industry to provide this kind of data. As a leader, we are committed to bringing the best user experience and building a healthy trading environment for all,” Mr Cheung added.

Recently, OKEx donated $4.5m — approximately €4m+ — of bitcoin to its perpetual swap market insurance fund in order to foster the confidence of customers in trading cryptocurrencies, according to a press release the company published.

The post OKEx launches trading data platform first appeared on The Malta Business Weekly.

Last year’s summit brought W. Scott Stornetta, John McAfee, the Winklevoss Twins and Sophia the Robot to Malta’s shores along with 8,500 delegates. Although last year’s summit predominantly focused on distributed-ledger technology solutions and blockchain, as of this year the organisers are expanding their scope of view.

“We are moving beyond the hype by discussing not only blockchain but also AI [artificial intelligence], quantum tech, big data, and IoT [internet of things] this year,” says Eman Pulis, Founder of the Malta AI & Blockchain Summit. “Before the big show in Malta in November, we are also hosting a number of networking dinners across the world,” Mr Pulis says, referring to the end-year AIBC.

Throughout the year, the AIBC is organising a roadshow of exclusive C-level dinners entitled the Knights of Blockchain. The Knights of Blockchain dinners are “lavish invite-only events with no expense spared in the company of 200 C-level Executives from the industry”, the organisers say about the series. “I strongly believe that business is not made between companies, it is made between people,” Mr Pulis adds.

“We are moving beyond the hype by discussing not only blockchain but also AI, quantum tech, big data, and IoT this year.”

To support startups within the sector, the AIBC has also invited 100 startups to claim a booth on the expo free of charge, giving them access to 700 attending investors. “We had overwhelming feedback from all the disruptive startups that we welcomed to claim their free booth last year,” says Mr Pulis.

“However, as we had so many interesting and promising projects that we could not accommodate in the fierce competition of the available space that we had, we are happy to increase to 100 free booths this year to boost innovation and facilitate connections between startups and investors so that this sector can flourish,” he adds.

The speaker line-up for May’s summit includes world-renowned names in the AI and blockchain space, including Tim Draper; Roger Ver; Ben Parr, Co-Founder of Octane AI and world-famous author of Captivology; Patrick Chang, Director at Samsung NEXT; Tone Vays, renowned bitcoin/blockchain researcher with more than 80,000 YouTube subscribers; Brock Pierce, Chairman of the Bitcoin Foundation; Alexander Borodich, Founder of Universa; Eric Van Der Kleij, CEO at Centre for Digital Revolution, and many more.

Last minute passes are still available for visitors, while exhibitors and sponsors can reach out to the organisers to explore possibilities.

The post Malta AI & Blockchain Summit’s spring edition opens doors 23 May first appeared on The Malta Business Weekly.

Malta has been positioning itself as one of the most progressive countries in Europe — if not the whole world — related to technological development. After passing what is often tagged as the “three landmark bills” in November last year, the country has become internationally renowned as the “blockchain island”. However, innovative progress in Malta is not only about distributed ledger technologies (DLTs); the government’s vision goes beyond that.

Very recently the island sent currents by announcing the possibility of turning into a zero-emission country, starting by planning a pilot of introducing an only electric vehicle zone in Gozo. Malta is also shooting for the moon with its latest vision of taking a giant leap into space. At the same time, this month means the public consultation about its recently-launched AI policy as the first step of establishing a national strategy. Such a tiny island, yet so much to do.

However, why bother with a public consultation? “We have the team, we have the brain, and we have the skills to come up with a national strategy, but since we understand that AI is a general-purpose technology — and like electricity, computers or the internet it will impact both the society and economy — we wanted to make sure it is inclusive and that nobody is left behind,” Mr Grixti tells BM in justification for turning to the public before establishing a strategy.

Hence, the Malta.AI Taskforce, an organisation assembled by the government to cater for setting up the AI environment in the country, very recently came out with an AI policy, and put it on the table of the public, opening the floor for input and feedback in the framework of public consultation.

Labour shortage increases challenges

Despite precautionary measures such as opening a public dialogue and securing a strong technical background and skillset, challenges can always arise, and Mr Grixti’s operations appear to be conscious about that. “I think one of the biggest challenges regarding AI progress in the country will be talent. Not because we don’t have high-level talent in Malta, because the talent we have is of a very high level, but rather the shortage of it,” Mr Grixti forecasts. Labour shortage has been an issue not only in Malta that boasts of rapid economic growth and plummeting unemployment figures, but also Europe-wide.

“Demand has been higher than the local supply. According to a Jobsplus [Malta’s national public employment service] report, last year — forecasting that given the GDP keeps growing at the current pace — approximately 10,000-13,000 jobs will be needed, while our local supply is about 3,000. There will be a labour shortage of around 7,000-10,000,” according to the AI task force chairman. Although the lack of skilled labour is an issue, the government seems to have an answer for tackling the difficulties.

“You can bring talent from abroad, but for that you need to create policy measures, to attract that talent. We are also investigating how to use AI to fill in certain gaps. Including upscaling and reskilling of the workforce, for example. So the main challenge I see in here is human resources and talent,” Mr Grixti underscores.

Finding niches at the forefront

Once the talent is fully working on the Maltese progress, Malta needs to David up and fight the Goliaths. The task force seems to have its strategy for that as well. “Another challenge, seeing ourselves, is competing with China and the United States in terms of AI. As we said at the launch, we are not positioning ourselves as the competitors of these countries on all fronts. We are working on finding our niches, and we believe we can be leaders in those niches,” Mr Grixti says, clearly signalling how Malta wants to join the giants at the forefront of this particular space of innovation.

“For instance, as we earlier said it, we would like to become the ‘Ultimate Launchpad for AI’, where we can create incentives, policies and the environment for companies — micro, SMEs and large enterprises — to set up shop in Malta, and let them build, test and implement their products in here and then springboard them to the world. I believe in this aspect we can be leaders,” the chairman adds. In fact, one of the main messages of the AI policy that hit the stalls recently is to set up a safe and welcoming environment on the lands of the archipelago for AI businesses and start-ups to come in here and develop their ideas into fully-functional products and services before they upscale them to international markets.

The so-called “three landmark bills” passed last year aspire to create a regulatory environment in Malta that does not only make it possible for tech businesses to develop their solutions here but can also be easily adjusted to further development if the latest changing trends increase the demand. “Last year, we enacted three laws, entitled the MDIA Act, ITAS Act and VFA Act” Mr Grixti reflects upon the progress.

Technology agnostic legal framework

“When we articulated the legal framework at the time, we were conscious that more emerging technologies would be coming forward. We then created a legal framework that is technology agnostic. If you look at the Innovative Technology Arrangements and Services Act, it is technology agnostic. In fact, we have come up with the term ‘innovative technology arrangement’ (ITA). Currently, these ITAs comprise of DLT platforms and smart contract solutions proposals that we are receiving, however, later we will expand this also to include AI,” the chief says.

At this point, the regulatory framework chiefly attracted the attention of blockchain-based solutions. While the blockchain, experts and developers claim, can go far beyond cryptocurrency-related solutions; still the vertical is mainly dominated by ventures trying to generate money through initial coin offerings (ICOs). With the quickly popping up ICOs, the number of scams has also been on the rise. Such a practice undermines trust in the digital space globally.

However, Maltese legislators appear to be aware of the dangers and step up proactively. “We have the foundations and building blocks to make sure that the projects that come here are sincere and will not scam investors. The current legal frameworks for virtual financial assets (VFA) and innovative technology arrangements (ITA), accompanied by the respective guidelines, provide legal certainty and user protection,” Mr Grixti says.

Framework for providing safety

“For example, when certifying an ITA, the first stage is due diligence of the people and businesses applying for the certification to ensure that they are fit and proper. The second stage is that we start looking at ITAs from a technological perspective. The authority has service providers — that are carefully selected — who carry out such audits. The auditors investigate three main aspects: management, security and functional correctness,” the chief describes the process.

“We want to protect users. One of our main objectives is to protect users,” Mr Grixti takes a firm stance on their operations. “Over and above that, once the certification is there, we have what we call a technical administrator (TA), who will ensure that the product — technology or software — runs with what we certified.”

“In case of any breach, the TAs must notify the authority and the users so duly measures can be taken; such as intervening if it is technically feasible. Any technical limitations are recorded black and white in the certificate, so we can keep the users up to date. This way, users have full control and knowledge over the matters,” the chairman winds up.

The post Malta ready to lead in AI amid challenges first appeared on The Malta Business Weekly.

In this ten-month-long phase — subject to an extension by the authority — the MGA is open to accept applications for the use of DLT Assets, directly or through third party service providers, by its respective licensees.

Under the updated Licensee Relationship Management System (LRMS) of the authority, new operators are requested to apply for approvals for the use of DLT Assets as part of a New Licence Application, existing licensees are asked to apply for approvals for the purpose of DLT Assets through the application type, and existing licensees wishing to participate in the sandbox environment are requested to report VFA player liabilities through the monthly Player Funds Report, according to the press statement. The MGA also notes that licensees are also required to report on any failed return transactions, for any invalid deposits.

“An approval to participate in the Sandbox Framework is conditional on the applicant holding the relevant licence issued by the MGA, without prejudice to any other regulatory requirements stemming from other applicable legislation, including but not limited to the VFA Act and regulations issued thereunder,” the authority concludes in the press statement.

The post MGA launches first phases of its sandbox framework first appeared on The Malta Business Weekly.

Under the memorandum, BANKEX will facilitate the introduction of blockchain technology to all government agencies in Uzbekistan with the intentions of minimising the potential for human error and precluding corruption.

“The present memorandum is directed at establishing a legal framework on which the parties can base the mutual cooperation necessary to ensure the quality as well as the qualified undertaking of tasks assigned to the parties,” says the memorandum.

The parties also agreed “to study the prospects for the introduction of innovative technologies, including blockchain technology” as well as to “exchange all necessary information and work experience, including through mutual internships and consultations,” according to the press statement.

The two parties are also planning to hold joint educational events, such as workshops, seminars, roundtable discussions and conferences on the principles of digital economy development, as well as the advantages of utilising the blockchain.

BANKEX is a New York-based and closely-held global fintech company providing a blockchain-based securitisation framework. BANKEX group companies legally operate within Class 3 and Class 4 licenses for Virtual Financial Assets on Malta, and therefore in the European Union.

The post BANKEX eyes introducing blockchain solutions in Uzbekistan first appeared on The Malta Business Weekly.

Figures for the past five years draw up a declining curve in terms of attractiveness for FDI, yet pundits find Malta can still be bullish about the upcoming years. In 2013, EY reported that 88% of the investors included in their survey found the country attractive for FDI. Although the figure dropped to 79% in 2014, it started climbing up step-by-step to 84% and 87% in 2015 and 2016, respectively, before taking another downslide. In 2017, some 78% of the consulted investors found the archipelago attractive, before last year’s 74%.

“Although there was a decline, three out of every four investors still believe that Malta remains attractive to their business,” Ronald A. Attard, Malta Managing Partner at EY, says in the foreword of the report. “Equally significant, four out of every five are committed to remaining here in 10 years, while 65% have expansion plans, the highest in the last three years,” the managing partner adds.

EY describes the current times as “transformative age”, with increasing global competition. EY sees that Malta must consolidate its position at the forefront of innovation to remain attractive for FDI. Malta’s most attractive FDI parameters include corporate taxation (mentioned by 88% of the asked investors), the stability of social climate (75%) and potential productivity increase for a company (67%).

Transparent and well regulated

At the same time, investors involved in the survey pinpointed some areas for further improvement. Stability and transparency of political, legal and regulatory environment appear to be the most crucial aspect mentioned by 44%, the R&D and innovation environment named by 37% and transport and logistics infrastructure singled out by 26%.

Some 83% say that Malta does keep the pace up with regulatory changes, and the regulatory environment offers an international advantage according to 56%. As such, EY finds that effective and efficient legislation will continue to play an essential role in attracting more FDI.

The labour market is also going through some spectacular transformation due to disruptive technologies. “As Malta’s economy continues to flourish, the ability to source skilled and unskilled labour is becoming increasingly challenging,” EY says in the report. Malta resembles EU trends in labour shortage and difficulties in finding skilled labour. Some 81% believe that they can manage to retain specialised personnel; however, only 36% manage to find and recruit the required specialised skills in the local labour market. Still, 63% believe that Malta has the right skills in place to keep up with technology.

Standing still in uncertainty

Although the Brexit is still not in the books and uncertainty surrounds it domestically and internationally, EY finds that Malta has not been affected by it, for the time being. While 77% of businesses included in the survey say the Brexit referendum did not have any effect on them, 19% claim they improved and 4% say they deteriorated in some ways.

International risks keeping companies located in Malta alert include the talent shortage (mentioned by 57%), the economic and political instability in the EU with the exception of Brexit (26%), the competition from emerging markets (22%), the rise in populist and protectionist feelings among politicians and populations (22%) and the impact of Brexit (19%), according to data by EY.

Looking into the future, 78% of the companies included in the survey said they expect to stay in Malta for the upcoming decade, 18% said they might stay, while only 3% said they would leave. Also, 65% expects to expand over the next year, 17% do not plan to expand, and another 17% could not say.

To remain competitive on the global scale, however, 70% of the respondents underlined the importance of improving education in Malta. Investors would also like to see more support for high-tech and innovation industries (61%) and small and medium-sized enterprises (59%), according to the survey,

Technology and iGaming leads

The EY report also singles out Malta’s iGaming sector as a significant contributor to the local economy. After being the first EU member state to regulate the online gaming market in 2004, Malta has become a significant iGaming hub with global relevance. The sector directly accounted for 11.3% of Malta’s gross value added — more than €1.1bn — in 2017 according to Malta’s National Statistics Office (NSO) statistics. The same year, the watchdog Malta Gaming Authority (MGA) issued a total of 165 new remote gaming licences.

“The contribution of the gaming sector to the Maltese economy is now entrenched at around one-eighth of the total, following a period of year-on-year growth in excess of 10%,” says Heathcliff Farrugia, CEO at Malta Gaming Authority (MGA). As well as Malta, as an early adopter, stood at the forefront of the iGaming industry, latest progress has shown that the same approach is being applied towards distributed ledger technologies, blockchain and artificial intelligence.

Prime Minister of Malta Honorable Joseph MMuscat notes the country’s progress made in distributed ledger technologies (DLT) and blockchain, placing the country at the forefront of regulating operations previously hovering in an unregulated space. Demonstrating what EY tags as “notable increase”, 50% of the respondents said that they believe the way forward for Malta is to tailor its regulation to keep pace with technological and other disruptions.

‘Quick’ and ‘rational’ actions in need

EY believes that to capitalise on the opportunities in this transformative age; Malta needs to act “quickly” and “rationally”, with a particular focus on the areas in which its competence will stand out against stiff international competition. The firm also warns that skills shortages remain a principal issue to be dealt with.

“Positioning the island at the forefront of innovation, while remaining true to the principles and values that the country has grown accustomed to, will be even more relevant going forward than ever before,” the report concludes.

EY’s attractiveness surveys apply a two-step methodology analysing both the reality and perception of FDI in the respective country or region. Findings are based on the views of representative panels of international and local opinion leaders and decision-makers, EY says.

The full report is available for download on EY’s website.

The post Malta’s FDI attractiveness drops to 74%, says EY first appeared on The Malta Business Weekly.