Malta goes by many names, but it could very well be about to lose its title as the blockchain island. Back in 2017, prominent Maltese journalist Daphne Caruana Galizia was killed in a car bomb attack after she threatened to expose a group of MPs for corruption. Just over two years later, the masterminds behind the plot have been exposed and the country is in political freefall.
Cabinet members are resigning left, right and center, business tycoons have been convicted and the prime minister himself is in some pretty hot water. Without a stable political platform to stand on, the blockchain island is looking dead in the water with little to no help coming any time soon.
Game Over for Labor
It looks like it could be game over for a great deal of Partit Laburista members, and this is bad news for Silvio Schembri and his blockchain island project. There are calls for a general election to give the people a chance to replace the government, and after this huge political scandal it looks like Partit Nazzjonalista could secure victory. If this is the case, Schembri and is blockchain island plans will be thrown out of Castile. This could stall the blockchain island and cause companies to begin moving elsewhere due to the slow progression of blockchain regulation in the country.
Malta Has Become a Joke
Thanks to the corruption at the highest level of government, many other countries and jurisdictions are now looking at Malta as a joke. This doesn’t bode well for Malta regulated blockchain projects, and many other jurisdictions could opt to view Maltese licenses and regulations as sub-par. It’s a well-known fact in Malta that if you have enough money and you pay the right people, any project can achieve a license. Now the world is well aware of this fact, it stands to reason that blockchain projects will seek to leave the country in favor of a well-respected home that has valuable blockchain regulations, not a set of micky mouse regulations and government.
Malta’s blockchain and crypto industry is far from flourishing, and this scandal that goes right to the prime minister himself could be the final nail in the coffin for the blockchain island. Unless conditions improve on the island and the country recovers some respect, no self-respecting blockchain company will wish to be associated with the island. This is bad news for Malta, but is great news for other blockchain-friendly jurisdictions such as Germany, Gibraltar and Cyprus.