By now, most of you know about Malta’s supposed status as the Blockchain island. Despite Malta’s popularity in the press, only the Virtual Financial Assets Act seems to carry a large amount of weight toward its’ claim. In the past few weeks especially, Gibraltar seems to be poised to take its’ apparent title.
Beginning with the announcement that the crypto wing of the Gibraltar Stock Exchange had become officially licensed and ending most recently with the news that crypto investments can now be insured in the country, some would say Malta has been left behind to an extent.
At the same time, the crypto news from Malta has not exactly been quiet. Companies continue to pour into its’ borders due to its’ relaxed yet defined stance on everything Blockchain. Just look at the fact that after Binance moved there, the number of Malta-based blockchain firms seems to have ballooned, which is evident from those represented at Malta’s Blockchain Summit this year.
In short, from being almost completely under the radar last year, Malta seemed to have become the go-to place for ICOs to launch this November. Now, however, the tides may be turning. With Gibraltar’s insurance of something that was supposed to be uninsurable, institutional investors may turn to their shores to engage with ICOs with a tide of new capital.
On the other hand, any chance of this happening depends on their insurance scheme truly working. To understand if this is possible, it’s also necessary to clarify that it all hinges on the efforts of one insurance company called Callaghan Insurance that is native to Gibraltar. On the Gibraltar Blockchain Exchange’s website, the company makes it clear that Callaghan will fully cover all assets that are under the exchange’s custody.
To quickly recap, this means that anything that any crypto coins that the GBX stores will be guaranteed under this agreement. As these include volatile assets with an uncertain future like BitcoinSV as well as more stable assets like Bitcoin itself, it will be interesting to see as time goes on, whether Callaghan’s coverage is enough to bring in more risk-averse investors.
Working in their favor is the fact that all sorts of user wallets will be included in the plan. Until we know more of the details, however, it is nearly impossible to predict whether this effort will succeed over the long term with crypto’s wild price swings.
By: BGN Editorial Staff