STASIS, a Maltese cryptocurrency project, recently launched its virtual currency EURS, pegged to the Euro at a ratio of 1:1. The launch comes at a time when firms are increasingly choosing Malta as the desired location to set up or invest in blockchain operations.
EURS is a decentralized token which runs on Ethereum protocol. According to the project’s website, an asset management firm will manage the collateral reserves and the coin will not be classified as a security under Maltese laws.
“Our reserves are verified daily so every investor will have confidence that the tokens issued are backed up”, Gregory Klumov said in an interview with crypto news website CCN.
There has been strong demand for EURS from institutional investors, especially since it offers stability to shield their investments from volatility generally seen in the cryptocurrency market, Kulmov added.
Palladium, another Malta-based blockchain firm, announced on Tuesday that it would launch the world’s first initial convertible coin offering (ICCO), where investors can convert coins into company shares three years after the sale. The sale is scheduled to begin on July 25.
The company said 35 percent of the proceeds from the sale would be used to set up a crypto exchange in Malta. Palladium will partner with Unikrn and Bittrex to establish the exchange.
Malta – pioneer in crypto regulation
At a time when governments worldwide have either adopted a cautious approach or ruled out the legitimacy of cryptocurrencies, Malta has become a hub for blockchain technology under the leadership of Prime Minister Joseph Muscat.
The European island in the Mediterranean Sea has become the first country to establish a regulatory framework for virtual currencies. The government passed three bills into law last week, which regulate digital ledger technologies and virtual financial assets in the country.
Interestingly, the University of Malta will offer a degree in blockchain and cryptocurrencies, starting October this year and will eventually establish a blockchain lab to train civil servants in the field.
Favorable rules draw cryptocurrency firms to Malta
Many companies in the blockchain space are looking to set up shop in Malta. The most notable move was crypto exchange giant Binance opening an office and even setting up a bank account in the country.
TRON CEO Justin Sun in March said that the company was seriously considering investing and operating in the island.
“The majority of cryptocurrency trading volumes operate out of companies legally located in Malta,” according to a Morgan Stanley report in April.
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