The Malta Government has announced Bitcoin and other cryptocurrencies will not be accepted for Malta Individual Investor Program (IIP).
Malta currently offers investment schemes to foreign investors IIP (citizenship) and MRVA (residency) and cryptocurrencies will not accepted. The citizenship scheme requires approximately €1.1 million euros investment of which €650K is donation
Cryptocurrencies will not be used to purchase citizenship through the Individual Investor Programme (IIP), a spokesperson from the Parliamentary Secretariat for Financial Services has told The Malta Independent on Sunday.
IIPA Agency further said “Malta paves the way in the cryptocurrency industry, but applicants to the Malta Individual Investor Programme (IIP) won’t have the possibility to pay for investments or contributions using virtual currencies.”
The Government further added “Malta is neither issuing its own cryptocurrency, nor making cryptocurrency legal tender.”
Malta clarified its stand on cryptocurrencies, after CBI Index 2018 published by the Financial Times raised concerns that Malta’s intention to be at the frontline of blockchain technology could result in programme agents accepting cryptocurrencies and converting them into legal tender for purposes of fee payment.
Accepting Bitcoin and other cryptocurrencies, is a concern with source of funds for AML, and also a challenge for due diligence. Bitcoin is widely countries hit by US sanctions such as Venezuela, Iran etc as a way to evade sanctions. After, Turkish lira plunged by 20%, a twitter survey revealed that 18% of Turkey is using Bitcoin.
The Blockchain island of Malta this year has approved three cryptocurrency and blockchain bills –Â the Virtual Financial Assets Act, the Malta Digital Innovation Authority Act, and the Technology Arrangements and Services Bill.
According to two citizenship surveys, Malta scored first in due diligence and compliance, when it comes to vetting of applicants.
According to IIP website, Currently, the policy of the Maltese Government excludes from applying individuals who are nationals of the Islamic Republic of Afghanistan, the Islamic Republic of Iran and the Democratic People’s Republic of Korea (North Korea), or are non-nationals but reside, do business, have significant ties with, or connections to these countries. Citizens from countries who are on the US travel ban also cannot apply.
Malta bars any applicant who has been denied a visa, without being able to demonstrate special circumstances, “has been denied a visa to a country with which Malta has visa-free travel arrangements”.
Malta requires all applicants under IIP to apply for e-residence card first and are required to establish residency as a ‘genuine link to the state’ through a one-year residency requirement with economic self-sufficiency and global health insurance.
