There is not yet an agreed framework for regulating cryptocurrencies around the world. Most countries are just charting their own paths with the hope that they will promote a fair and vibrant market in the long run. Since different approaches and attitudes are dominating different markets though, it is not entirely misplaced to expect that some countries have developed better frameworks than others. While most blockchain startups are being treated with the same financial laws as other institutions in most countries, there are those countries that have considered the blockchain landscape and its uniqueness. Such countries have an improved fintech industry. The following are the top five countries that are leading the way with attracting top-level fintech startups.
Malta
This island nation has been at the forefront of championing innovation, especially in the blockchain world since the onset. Malta has very impressive laws and the law development process is also ample, especially when it comes to fintech companies. Malta has already been discussing virtual currencies, ICOs and various service providers that exist in the crypto world. There is an active movement in the parliament to see law drafts fast-tracked and implemented for the welfare of the innovative scene. Among the aspects that Malta has focused on include:
- Licensing of financial companies to access the EU and EEA.
- Regulatory regimes for virtual currencies to be used in the virtual tech world.
- Creation of a specific regulatory body to deal with certification, licensing and other services.
Singapore
Singapore has many accolades when it comes to embracing fintech. This country is a major player in the crypto world, being a host of some of the largest trading exchanges. The country also has a vision of becoming the first fully smart nation. Singapore has a unique position in the global financial world as it has been connected to both Europe and Asia for a long time. The country was among the first to champion for the cause of blockchain and cryptocurrency. Its market was also the first to foster the growth of these technologies without interference. Today, Singapore has authorities like the Monetary Authority of Singapore (MAS), which is fully behind the creation of a fintech ecosystem. Singapore is definitely the country where forex companies and other companies in the financial world might go smart first. The regulatory institutions of Singapore have focused on:
- Creating a separate licensing framework for virtual currencies.
- Development of different tiers for regulating security tokens.
- Provision of a sandbox and creation of a system where virtual and ordinary currencies can interact.
Gibraltar
Gibraltar has always been leading other countries when it comes to advocating for crypto. Within the past few years, this country has released multiple publications that have led to the creation of regulatory regimes that are sensible and progressive. Gibraltar is thus endeared in the crypto world and it hosts a number of exchanges. This country also has numerous license applicants waiting to be approved to operate in the country. With its strong banking sector and vibrant financial scene, this country is simply leading the way in areas that it has been traditionally competitive in. The country will definitely be quite sophisticated in the near future when it comes to cryptocurrency and blockchain progress. The areas that Gibraltar has focused on when it comes to fintech and crypto business include:
- Draft regulations for ICOs and other activities surrounding them.
- Coalescing with EU laws to allow seamless interaction of local fintech firms with the EU.
- Crypto-specific regulations that will allow progress and vibrancy in the fintech world.
Germany
Germany is a market that is defined by strong financial markets that have equally strong regulatory regimes. This country is already a great destination for global business. With a vibrant banking and financial sector, Germany has sought to transition to the fintech world as seamlessly as possible. There are numerous crypto firms that are already operating in Germany and the numbers are set to grow with the ample regulatory aspects of the country. While Germany has many great things going on, the most noteworthy for fintech firms is that it is one of the big countries that are at an advanced stage when it comes to crypto regulation.
Hong Kong
Finally, Hong Kong is another country in Asia that has often been a rival of Singapore. In many ways, the regulatory regimes in Hong Kong are similar to Singapore but there are some significant differences. The country is for instance hailed as a fintech-friendly country that has launched numerous innovative authorities. Hong Kong is also a gateway to China and thus an important hub for crypto investors from around the world.
