According to local news reported on May 8th, Malta’s Registry of Companies is going to operate on a blockchain-powered system from now.
The Registry of Companies is a public registry holding official information and documentation pertaining to new and existing companies. At the end of last year, the agency established itself as an independent from the Malta Financial Services Authority’s (MFSA).
Now, the registry is seeking out a new method of organizing and documenting their information, as they plan to use a blockchain-based system. The act of demerging from the MFSA and becoming an independent establishment will lead to strengthening the internal management structure of the data.
Silvio Schembri – Secretary of the Parliamentary Secretary for Financial Services, Digital Economy, and Innovation – stated that the use of blockchain technology will provide greater efficiency, while “lessen[ing] unnecessary bureaucratic procedures.”
He further added that the agency will operate on a new system, which will handle all of the processes executed by the Registry of Companies. He noted that with the new system in place, new services will be provided, which was not possible before as this is the first agency in the world to be run on a blockchain based system.
In addition to that, Silvio Schembri has noted that the new premises will form an integral part of Malta’s technological and innovative activity.
“While previous administration disregarded the South of Malta, this administration sought to exploit the potential of this area by bringing commercial activity to the part for the benefit of all,” said the Parliamentary Secretary.
The Registry of Companies will be located in Zejtun together with the International Taxation Unit, Tech.MT Foundation, Finance Malta and Gaming Malta.
Last December, Malta together with seven other southern European Union member states, released a declaration encouraging the use of Distributed Ledger Technology’s (DLT) within the region. The declaration outlines several industries such as education, transport, mobility, shipping, Land Registry, customs, company registry, and healthcare, which can benefit and improve from implementing blockchain technology.
Meanwhile, the International Monetary Fund (IMF) stated that the growth of blockchain in Malta had created significant risks of money laundering and terrorism financing in the island’s economy. Subsequently, the IMF had issued several recommendations to the authorities such as applying more sanctions and gaining a better understanding of possible risks and regulatory breaches that come with blockchain technology.
Despite that, the Prime Minister of Malta has voiced a positive stance regarding the fintech and has argued that there is a potential for corporate, political, and civic systems to benefit from blockchains implementation, adding that it could ultimately solve “decades-old problems.” He further claimed that this potential is what drove the country to “launch itself as a Blockchain Island,” stating that the island became “the first jurisdiction worldwide to regulate [the] technology.”