Category: The Blockchain Island

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A Half Year Report on virtual currencies in 2018

Categories Blockchain, Cryptocurrency, Regulatory, ICOs, Malta, ICO Legal Service, Law, The Blockchain Island, DLT Regulation, Smart Contracts, E&S Group, Technology, Trading, Cryptocurrency Exchange, Tokenomics, Regulation, Tokens, Binance, Utility Tokens, Security Tokens, DLT

A Half Year Report on virtual currencies in 2018

2018 has been an interesting year for crypto with colossal crashes, much-needed market adjustments, and of course, the emergence of a large number of new tokens and cryptocurrencies. Along with significant advances in regulation and legal frameworks that seek to understand, support, and protect those stakeholders operating within this new industry, there is no doubt that the rest of 2018 is going to be just as, if not more exciting as the previous six months.

Mid-January Market Crash

If you were holding Bitcoin in December 2017, you probably couldn’t believe your luck. As the value of a single Bitcoin headed towards $20k, a mad rush to invest ensued and predictions on where the price may head reached stratospheric new heights. Then on January 16th 2018, Bitcoin investors woke up to a nasty shock. The value of their coins had dropped by 15% and this news had a knock-on effect on the value of all other altcoins, causing a huge slump in the value of the market. The excitement and hype that had surrounded cryptocurrencies just a few days before, disappeared just like the profits of those who invested in it.

As prices continued to fall, investors started to panic. They started selling their coins in an effort to nip their losses in the bud and the moniker “Black Tuesday” was coined. Some crypto-coins saw losses of up to 40% and it seemed like many naysayers predictions were coming true and that the bubble had finally burst. Some voices remained steadfastly optimistic however and maintained that price slumps were common in all markets, not just the crypto one. After such an exponential increase in value, it was naturally expected that the market would correct itself because after every meteoric rise comes to a reverse-swing of the pendulum that needs to be ridden out – January was exactly that. As prices are now more stable it is hoped that they will increase at a steady rate, signalling a new era of market stability and maturity.

TRON Makes a Name for Itself

Since January of this year, TRON has experienced a steady increase in value. Despite a few issues, mainly caused by the crypto price-crash, it seemed to have found its niche which suggests a bright future for both the platform and its cryptocurrency.

TRON is a decentralised, blockchain-based, protocol project that functions as a content distribution platform for the digital entertainment industry. Whilst the platform itself is yet to go live the TRX coin is gaining significant traction.

Created by Justin Sun in 2017, the concept behind it is to establish a global network of free entertainment content which allows creators to publish, store and distribute their own content without the need for an intermediary. Whilst its value per coin was only $0.30 in January, it is expected to hit $1 by the end of 2018.

Its main selling point is that it is not just another cryptocurrency. It has a platform that solves a problem and offers functionality to a range of users and publishers. Over the last year, TRON has increased in value by 1.39% making it one of the top crypto coins in terms of growth, making it one to keep your eye on as we progress through 2018.

The Unexpected Rise of Litecoin

Many have dismissed Litecoin as “the poor man’s Bitcoin” but despite this, its popularity has increased drastically over the past few months. It was initially launched via an open-source client on GitHub in 2011, a sort of spin-off of the original Bitcoin Core client, but it offered much lower block generation times, a higher number of coins, a modified GUI, and a different hashing algorithm.

In 2013 it experienced a big surge in value and by May 2017 it had secured a spot as one of the Top 5 global cryptocurrencies in terms of its market cap. Now accepted by a wide range of online retailers, its adoption is increasing and many are seeing it as a better alternative to the rather bloated and over-inflated Bitcoin.

12 and even 6 months ago, blockchain was not something that was widely understood but as we progress to the end of 2018, it is expected that we will see a dramatic uptake of blockchain integration across a diverse range of sectors. Following in the footsteps of IBM, Microsoft, and Maersk, even smaller SMEs are likely to be interested in harnessing its potential.

Litecoin is predicted to peak at a value of over $600 per coin by the end of 2018 and there is no doubt that it has huge potential. Negating many of the issues that are faced by Bitcoin users, it presents a practical, simplified and completely viable alternative to the crypto-giant.

Malta Takes the Lead in Industry Regulation

In the last 12 months, it has seen cryptocurrency, blockchain and ICOs negate a minefield of regulatory and legal issues. Problems around its classification, AML and KYC regulations, and the reluctance of many banking institutions to support the burgeoning technology has resulted in many setbacks for the crypto world but that is all set to change.

The island of Malta has long been a hub for digital technologies and it is well known for its iGaming, Finserv and Fintech industries that when combined, account for around half of the country`s GDP. Then, in March 2018 the Government announced the drafting of three new bills that would seek to provide legal and regulatory clarification on DLT, crypto, and ICOs. These bills are the Virtual Financial Assets Bill which would provide a regulatory framework for ICOs and virtual currencies, the Malta Digital Innovation Authority Bill and the Technology Arrangements and Services Bill which will oversee companies that operate within the market, as well as providing a much-needed guidance and clarification.

This makes Malta the first jurisdiction in the EU, and the world to create a comprehensive legal framework that not only protects all stakeholders including operators and investors, but also supports the growth and development of the industry. By ensuring explicit legal clarification as well as adherence to AML and KYC regulations. This means that the industry will receive a much-needed confidence boost and will help to increase the  level of public trust in this new market sector.

Binance Relocates to Malta

As a result of Malta’s decision to support cryptocurrencies and related industries, an exciting announcement came just a few days later. Binance is the largest cryptocurrency exchange in the world and commands 10% of the global trading volume as well as having a market capitalistion of $1.3billion at the time of writing. Its founder Changpeng Zhao started Binance in July 2017 and in just a couple of short months, it has grown to be the market leader.

Following the introduction of restrictive laws in Japan and China regarding cryptocurrencies and exchanges, Binance was on the look out for a more welcoming and flexible home. On March 23rd, Binance announced their move to Malta and the crypto community rejoiced. Such a vote of confidence is a big deal for the small EU country and it is expected that such a move will encourage many other companies and startups to follow suit.

The Blockchain Boom

This time last year, most people had heard of the blockchain but only in the context of it being intrinsically linked to Bitcoin. Now, the technology has broken away from just monetary uses and has earned a lot of attention for its potential. In the last few months, more and more use cases have come to prominence at blockchain has found uses in industries such as logistics, healthcare, politics, real estate, and even crypto-powered beer vending machines. It has also been tipped to completely revolutionize the way we vote, as well as provide microloans to SMEs in developing countries and to solve the energy crisis in third world countries.

 

E&S Group is a leading corporate & law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at [email protected] to find out how E&S can help you in ‘making things happen’.

For more information click the link.

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Blockchain island to welcome Waves

Categories Blockchain, Cryptocurrency, Malta, The Blockchain Island, DLT Regulation, E&S Group, Regulation, Waves

Blockchain Island to Welcome Waves

Waves, a popular decentralized blockchain application, is currently in talks to relocate all or some of its operations to the island of Malta.

This week CEO of Waves, Sasha Ivanov met with the Maltese Prime Minister, Joseph Muscat to discuss the accreditation required to operate within the country. Cooperation in terms of land registry, voting, healthcare and other sectors, as well as various proposals to use Waves as a platform for the tokenisation of financial instruments, was also discussed.

In a statement released by Waves, the meeting was described as “encouraging”. The statement added:

“We are interested in this accreditation and are ready to start working with Malta’s legal experts to bring our ready-to-use blockchain solutions here.”

Junior Finance Minister, Silvio Schembri added that there was a chance that the Maltese government would reach an agreement with the Russian company in the coming weeks. Good for Waves, the Russian state-owned manufacturing conglomerate Rostec has agreed to work with Waves on the development and implementation of the Waves platform for the management of data with $2 million being invested into the project.

This week, Waves also announced the launch of a new protocol that would allow smart contracts to run over the Waves main-net.

Over the last few months, Malta has seen an incredible influx of big-name cryptocurrency related businesses relocation to Malta. Binance, OKEx, BitBay, and ZB.com have all announced either a full relocation or the opening of operations in the country, now dubbed “blockchain island”.

This current influx of blockchain and crypto related businesses is due to the three acts that are to come into force on the 1st of November 2018 that will seek to regulate and define the burgeoning industry. These new laws will place Malta at the forefront of global regulation for cryptocurrency and related industries, making it something of a pioneer.

If you own or think of starting a blockchain-based business, then Malta should be at the top of your list when it comes to choosing a jurisdiction. To find out more about setting up a business in Malta, and all of the legal and regulatory requirements, please contact a member of our team here. E&S Group is perfectly positioned to help with setting up companies and business structures, providing fiscal and legal advice. Contact us on [email protected]

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Refreshing KSU

Categories Malta, The Blockchain Island, E&S Group, University, Academics, Applications, Education, KSU

Refreshing KSU

E&S Group was participating in the KSU Fresher’s Week organised at the University of Malta, 1-5 of October. There are around 11,500 students, including about 1,000 international students from 92 different countries and 450 visiting overseas students, following full-time or part-time degree and diploma courses in the Maltese University. on the 1st week of October fourteen Faculties, eighteen Institutes, thirteen Centers and three Schools of the campuses in Msida and Valletta opened their doors for the freshers.

The opening ceremony was followed by numerous workshops, quests, games and activities organised by the University’s students communities and partnering organizations, including E&S Group which had its tent welcoming students and graduates. During the 5 days of the event, the company representatives from legal, accounting, corporate and marketing departments were inviting students with a related background to complete the internship with E&S Group. As a result, we got 37 applications from law students, 45 – from economists and accountants, and 35 application forms were filled in by undergraduates studying education, communications, media and design.

Except for spreading the information about its services and career opportunities, the E&S team also organised the competition where the winner is to get the tablet as the main prize. The number of participants reached almost 100! We are comparing top 5 results now to get in touch with the lucky winner as soon as possible, so keep your cell phone on.

E&S Group is growing and will be happy to see young talents among its professionals. If you miss the opportunity to visit our stand, the information about our operating principles, services and the company development can be also found in our brochure left in the following departments: Faculty of Economics, Management & Accountancy (FEMA), Faculty of Information & Communication Technology (ICT), Faculty of Laws, Institute of Digital Games, ICT Building, IT Services, Library, DegreePlus, KSU noticeboard.

 

E&S Group provides a range of services including ICO Legal Services, Corporate Services, iGaming, International Tax Planning, Financial Planning, Tokenomics, and more. If you are a student willing to work in one of these fields in the future, be sure to get in contact!

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Real Estate Agents in Malta to Use Blockchain to Share Property Market Data

Categories Blockchain, Malta, The Blockchain Island, Data, Real Estate, Property

Real Estate Agents in Malta to Use Blockchain to Share Property Market Data

 

Some of the leading real estate agents in Malta have announced plans to use a blockchain-based platform to share information and data that related to the local property market.

Ledger Projects is a Maltese company that has also announced an application that will allow notaries to record promise-of-sale agreements on the blockchain, after they have been signed. This platform will allow local notaries to be informed in real-time when a property has been sold, thus removing any possibility of human error.

The new platform will be supported by Exonum and will be built by one of the world’s largest blockchain infrastructure providers, Bitfury.

“Our Distributed Ledger Technology platform will make it possible for stakeholders to have accurate real time information about the industry for the first time ever within a blockchain environment that is secure, distributed and immutable,” Ledger Projects’ directors Anthony Mamo and David Schranz said. “Eventually the data collected within the system may also assist other stakeholders to understand emerging trends and to enable these to pre-empt infrastructural requirements.”

One of the real estate agencies that has signed up to use the new platform believes that the ability to collect and share information will be of great use to the property industry on the island. “The blockchain technology and its applications are moving forward at a fast pace and we are very excited to be getting involved at this early stage,” he said.

As Malta’s property industry continues to boom, it is attracting a lot of international attention and investment. By implementing operational services over blockchain platforms, Malta becomes one of the first countries to do so, thus offering a significant competitive edge. Blockchain has offered many possible use cases to the real estate market – from the use of smart contracts in the purchasing process, to the storing of contracts and deeds in a secure and immutable manner.

 

To find out more about the implementation of DLT technology into your business operations, or how to create your own blockchain-based solution, contact us today on +356 20103020 or by email at [email protected].

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The KYC Process for ICO Investors

Categories Blockchain, Cryptocurrency, Regulatory, ICOs, Malta, The Blockchain Island, Know Your Customer, Anti Money Laundering

The KYC Process for ICO Investors

As ICOs have gained popularity across the world, so are they coming under the watchful eyes of regulatory bodies and authorities now. Whilst many jurisdictions are not particularly clear on where they stand when it comes to ICOs, Know Your Customer (KYC) is a globally understood concept. Issuers of ICOs want to know who is investing in their project and investors want to know who they are dealing with – legitimate, trustworthy, and credible partnership.

But what is KYC and why do ICOs need it?

What is KYC?

KYC is an abbreviation for “Know Your Customer” and it refers to the process of a business or commercial entity, verifying the identity of its clients. It also helps to ascertain any risks of illegal intentions such as money laundering or the financing of terrorism.

By gathering KYC documents such as government-issued photographic ID, proof of address, and information on the source of any relevant funds, the company can establish the authenticity of an individual’s identity – something that is essential when dealing with money, assets, or other financial services. It is also important to know whether an investor or individual is a Politically Exposed person, a criminal, or someone that may pose a risk to the integrity of the business.

The undertaking of KYC is mandatory for many processes such as opening a bank account, forming a company, becoming a director in an enterprise, or even procuring the services of a lawyer or accountant. It is also becoming more prevalent in the world of cryptocurrency and ICOs as authorities and governments strive to regulate and legitimise the flourishing industry.

Why the world of finance needs KYC

The reason why KYC is needed in the world of finance is obvious – because many misbehaving actors attempt to use the financial system for nefarious activities. These can include setting up fraudulent structures, dodging tax, money laundering, proceeds of crime, facilitating bribery, or funding terrorist organisations.

The United Nations Office on Drugs and Crime estimates that around 5% of the global GDP is laundered each year, which translates to billions of euros, just through the European Union member states alone. When reputable businesses get inadvertently involved in such activities, the outcome can be devastating. Not only can they lose money and incur hefty penalties, but they risk irreparable reputational damage and even the closure of their business. As bad actors become more and more sophisticated in the way in which they circumvent KYC and AML laws, businesses have to be more dedicated in the way that they adhere to applicable regulations.

In the digital world, one of the fastest growing sectors, the use of KYC is even more important. Using the internet and cryptocurrency allows users a degree of customers anonymity which means that it is open to abuse. By ensuring that KYC is upheld, those operating in the cryptocurrency, blockchain, and ICO sector can enjoy a greater level of security.

KYC in Malta

Malta has recently introduced three new Bills that will regulate cryptocurrency, blockchain, and ICOs within the country. As well as these Malta-specific laws, businesses operating in and from the country must adhere to the EU 4th Anti Money Laundering Directive. It is also worth noting that the EU 5th Anti Money Laundering Directive is due to be implemented not later than January 2020, and it will provide more depth requirements for issuers of ICOs to satisfy.

Provisions in the new laws have put in place strict requirements that both ICO providers and investors must adhere to. Complying with such requirements offers many advantages including legitimacy, confidence and transparency. It will also allow ICO issuers to reach a wider global audience as well as to increase the number of jurisdictions in which the ICO offering can take place. Furthermore, many cryptocurrency exchanges are starting to refuse to list tokens or coins that are not compliant with AML and KYC regulations.

At E&S Group, we have the knowledge and the experience to help you create the applicable KYC processes that your ICO or startup needs. We have a full understanding of both local, EU and international laws and requirements in these areas and we can assist in advising and creating policies that will ensure full compliance with the law. Do not risk the integrity of your business and reputation, make sure you know who you are dealing with and operate on the right side of the law, at all times. Contact us today by sending us an email on [email protected] to find out more.

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Forbes quotes Muscat’s Bitcoin Prediction

Categories Blockchain, Cryptocurrency, Malta, The Blockchain Island, DLT Regulation, E&S Group, Bitcoin, Tokenomics, Regulation

Forbes quotes Muscat’s Bitcoin Prediction

The Prime Minister of Malta Joseph Muscat has recently gained the fame as one of the most often quoted politicians in the European space due to his statements on the development of the digital industry and its regulation.   He has already announced his positive attitude towards bitcoin and blockchain from the point of their ability to eliminate third party service providers, giving users more freedom over information and money.

Forbes writes about the “Massive Bitcoin Prediction” according to the statement of Malta Prime Minister Joseph Muscat in an address to the United Nations General Assembly, where he has expressed his belief that blockchain technology is the tool that will help digital currencies “inevitably” gain mass adoption and become the future of money.

“I passionately believe technology revolutionizes and improves systems,” said Muscat. “This is why in Malta, we have launched ourselves as the blockchain island.”

“By being the first jurisdiction worldwide to regulate this new technology that previously existed in a legal vacuum. Blockchain makes cryptocurrencies inevitable future of money. More transparent, it helps filter good business from bad business.”

“Emissions trading systems can be taken to the next level. We can help verify that humanitarian assistance is reaching its intended destination. We can make sure that nobody is deprived of their legitimate property because of compromised data.”

E&S has already written about the progressive attitude of the Maltese authorities towards blockchain and the interpreters operating within this space, coming up with the regulation on the 1st of November.

Operating in Malta, E&S Group adheres to the Maltese laws with regards to ICOs, cryptocurrency exchanges and tokenomics. If you require further information contact us by sending an email on [email protected]. We make things happen!

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1st of November – Maltese Regulation Comes into Force

Categories Blockchain, Cryptocurrency, ICOs, Malta, Law, The Blockchain Island, DLT Regulation, E&S Group, MFSA, VFA Act, DLT

1st of November – Maltese Regulation Comes into Force

Since March, the Maltese government has begun discussing the ways to regulate the Distributed Ledger Technology (DLT) and the related digital space, including Initial Coin Offerings (ICO), cryptocurrency exchanges, Blockchain based companies, FinTech and Artificial Intelligence (AI). Through this progressive approach taken by the authorities, many big corporations namely, Binance, OKEx and Neufund have chosen Malta to be the place for business relocation. These companies have also helped the Maltese government to draft such progressive laws, encouraging more businesses to transfer their operations to the island. Prime Minister Dr Joseph Muscat tweeted that “[Malta’s] aim [is] to be[come] the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world-class fintech companies”.

On the 4th of July 2018, the Maltese parliament unanimously passed three laws, namely: Malta Digital Innovations Authority (MDIA), Virtual Financial Assets Act (VFAA) and the Innovation Technology Arrangement and Services Act (ITAS). This was a success, making Malta a leader in this ever-growing industry, hence dubbed as “The Blockchain Island”.

The industries had been waiting for these laws to be implemented for a long time. Regarding the Innovative Technology Arrangements and Services Act, 2018 (ACT No. XXXIII of 2018) the Minister for the Digital Economy has established the 1st November 2018 as the date on which the provisions of the said Act shall come into force. In exercise of the powers conferred by article 1(2) of the Virtual Financial Assets Act (ACT No. XXXIII of 2018), 2018, the Parliamentary Secretary for Financial Services, Digital Economy and Innovation, in consultation with  Malta  Financial  Services  Authority,  has  established  the  1st November 2018 as the date on which the Act shall come into force.

The MDIA, which falls under the Malta Financial Services Authority (MFSA), has already been in operation.

What do the VFA Act and the ITAS Acts change?

One of the most important acts is the VFAA, as it regulates the whole Initial Virtual Financial Assets Offering and Virtual Financial Assets ecosystem and increases transparency requirements. The high-level principles and means of prosecution are applied to those who abuse market regulations, for example, by not adhering to the 5th anti-money laundering directive.

The VFAA covers the following; offering of VFAs, regulation of all services providers operating on the VFA space; licencing of all requirements and obligations of ICO issuers or those companies providing any kind of services to ICOs; structuring and implementing the financial instrument tests, identifying the minimum disclosure requirements for ICO whitepapers, control on marketing and advertisement of VFAs.

The law attests that every ICO better named by law as “initial virtual financial asset offering” or “initial VFA offering” needs to pass the Financial Instrument Test to be presented to the MFSA. The Financial Instrument Test is led by VFA Agents, which have to undergo a test to obtain a license from the respective authority. The law states that the VFA Agent is to be a source of guidance between the VFA issuer or the VFA service provider applicant, acting as a contact person between the MFSA and the client.

On the other hand, the ITAS is defined as “a regulatory framework which will be set up for the registration of Technology Service Providers (System Administrators and Auditors) and the certification of Technology Arrangements.” Its role is to “provide for the regulation of designated innovative technology arrangements referred to in the Act, as well as of designated innovative technology services referred to in the Act, and for the exercise by or on behalf of the Malta Digital Innovation Authority of regulatory functions with regard thereto.”

The ITAS provides a liaison with the MDIA. Its purpose is to seek all relevant authorisation by the MDIA.

Operating in Malta, E&S Group adheres to the Maltese laws with regards to ICOs, cryptocurrency exchanges and tokenomics. If you require further information contact us by sending an email on [email protected]. We make things happen!

 

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Oxford researcher wants to open the first blockchain university in Malta

Categories Blockchain, Cryptocurrency, Malta, The Blockchain Island, University, Technology

Oxford researcher wants to open the first blockchain university in Malta

An Oxford research fellow,  Joshua Broggi is looking to open the world’s first blockchain University, in Malta.

A co-founder of Woolf University, Broggi and three other directors have announced plans to open a blockchain-powered university on the island. The university will run on a completely blockchain-based system in an effort to save on operating costs and to increase efficiency by automating all administrative procedures. This is in addition to the fact that the immutable and trustworthy nature of the technology means that all degrees earned from the university will be secure and validated on the blockchain.

“We use a blockchain to create efficiencies by managing custodianship of student tuition, enforcing regulatory compliance for accreditation, and automation a number of processes,” Broggi told Forbes in an interview.

The university will offer a range of courses both online and on-site and its structure is designed to encourage earning anywhere in the world, via tailor-made tutorials. Both students and teachers will be able to “check in” to a lesson which will trigger a series of smart contracts which will validate activities such as attendance and the completion of assignments whilst also paying the tutor for their time.

Students will also receive micro-credits for completing certain tasks and these credits will be able to be used towards paying for their course.

Blockchain technology is already being used in a number of universities for recording and authenticating degree certificates it has also caught the attention of various universities such as the University of Oxford, Cambridge University, and Kings College London.

The original plan was to gain funding for the project through means of an ICO, but Woolf announced that they have received enough private funding to be able to negate this step.

Broggi and his team aim to open a total of five colleges but due to Malta’s reputation as the “blockchain island”, it was an obvious first choice.

Malta’s Prime Minister Joseph Muscat said in a statement:

“As an island country, Malta has a long tradition of looking beyond its own borders, and Malta is now developing a robust regulatory framework for distributed ledger technology. Both the educational policies and the blockchain policies are supportive of Woolf’s aims and we look forward to continued work with Malta as they become ‘the blockchain island.’”

 

E&S Group is a leading corporate & law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at [email protected] to find out how E&S can help you in ‘making things happen’.

For more information click the link.

 

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Juventus to launch a fan token

Categories Blockchain, Malta, The Blockchain Island, E&S Group, New ICO - ChiliZ, Technology, Tokens, Football, Socios.com

Juventus to launch a fan token

One of the world’s leading football clubs, Juventus has announced a new multi-year agreement with a blockchain-based fan platform called Socios.com. The partnership will result in the launch of a Juventus Official Fan Token, which will give them voting rights on some of the club’s decisions. It is the second of this kind following a recent announcement from Paris Saint Germain.

The sports voting platform Socios.com is driven by one of E&S Group’s Clients, a blockchain start-up called chiliZ. Founded by French entrepreneur Alexandre Dreyfus just 15 months ago, the Malta-based venture has raised US$66 million from investors including Beijing-based venture firm FBG Capital and Binance. E&S Group helped chiliZ structure its token offer.

Juventus boasts over 340 million fans globally and the clubs following on social media far exceeds the 60 million mark. Now with the launch of the Juventus Official Fan Token, the club hopes to increase the level of fan engagement on a global scale as well as allowing non-European fans to fully enjoy their Juventus experience.

Fans and holders of the token will be able to trade them globally as well as engage via a mobile voting platform giving them a greater opportunity to interact with aficionados and enable them to share their opinions. Tokens will be available in a Fan Token Offering (FTO) via Socios.com in the first quarter in 2019.

Giorgio Ricci, head of global partnerships and corporate revenues at the club said in his statement:

“Juventus is glad to welcome Socios.com to our partners. At the Club, we are always very careful and pro-active towards innovation and new technologies. Together with Socios.com we believe we can offer new opportunities to our worldwide fan base to engage in cutting-edge way with their favourite club.”

Founder and CEO of Socios.com, Alexandre Dreyfus added:

“As one of the biggest and most successful football clubs in the world, I am delighted that Juventus has chosen to work with Socios.com, and to seek the rewards that our innovative blockchain technology has to offer.”

Socios.com has yet to conduct any surveys among sports fans to see how interested they are in the tokens issued by their favourite clubs, but the deals with PSG and Juventus should help to get more people on board.

Socios.com long-term plan is to partner with over 50 football clubs whilst injecting an impressive $300 million into the sporting ecosystem over the next five years.

E&S Group successfully tokenised its services and helps other businesses to do the same. To find out more details contact a member of our team today by sending an email on [email protected]

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Corporate tax regimes in DLT-friendly jurisdictions

Categories Tax, Blockchain, Cryptocurrency, Malta, The Blockchain Island, DLT Regulation, Technology, DLT

Corporate tax regimes in DLT-friendly jurisdictions

Over the last few months, Malta has worked hard to cement its position as the global hub for DLT, cryptocurrency and related industries. After recently bringing in three new Acts that will provide much needed regulatory certainty within the industry, Malta is currently the most crypto-friendly EU jurisdiction. But when it comes to setting up a cryptocurrency or blockchain business, tax considerations are often at the forefront of entrepreneurs minds. So how do various EU jurisdictions stack up against each other?

Malta

Malta’s tax regime has been approved by both the European Commission and the OECD and any company that is incorporated in the country is subject to a flat tax rate of 35%. There are however a number of exemptions and refunds available that can effectively reduce the amount of tax paid to as little as 0%. When a company pays the 35% rate, the shareholders are entitled to a refund of part or all of the tax they pay on the dividends that they receive.

Switzerland

Whilst not technically EU, Switzerland is still in the EAA and has long been a reputable jurisdiction when it comes to business. When it comes to corporate taxation, Swiss companies are liable to pay income tax on any profits generated within the country; at the federal level this is 8.5% but this can be reduced to 7.83% as it is deductible for tax purposes. Tax is also payable at a local level, meaning that a business incorporated in Switzerland can pay between 11.5% and 24.2% tax.

Gibraltar

A British Overseas Territory, Gibraltar has a flat rate of taxation of just 10% on any income that is derived in or from the jurisdiction. The problem with setting up a business in Gibraltar at the moment is that no one is sure what will happen when the UK leave the European Union. This hangs a cloud of uncertainty over business that jurisdictions operating there, particularly if they have business interests in the European Union.

Lithuania

Corporate entities that are incorporated in Lithuania are subject to an income tax rate of just 15%.  Some businesses are able to apply for a reduced rate depending on the size of their business, for example, if they have less than 10 employees or a turnover of less than EUR 300,000.

 

The above is not to be construed as legal advice. If you need any advice you should contact your advisers accordingly.

If you are looking to set up a business, E&S Group is able to assist you with every step of the way. To find out more, send us an email on [email protected] or phone us on +356 2010 3020

 

 

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