Malta passed three laws regulating the blockchain space back in November 2018, a move intended to position the island as a pioneering nation with regards emerging technologies. What followed was a flurry of international interest, with crypto giant Binance moving its offices to Malta and the likes of Steve Wozniak, John McAfee and Ben Goertzel all displaying interest.

However, many players have baulked at the regulatory and financial requirements of obtaining a Maltese license and have since turned their eyes elsewhere.

Leon Siegmund, a board member of the Malta Blockchain Association, told crypto news website Decrypt that the hype around ‘Blockchain Island’ is truly over.

“Internationally speaking, [Malta] is not a hotspot anymore. Germany now allows their banks to hold custody on bitcoin wallets. That means this little time window for a small country to come up with an attractive framework is over,” he said.

Siegmund also referred to Germany’s recent law which requires crypto companies to hold a German license in order to provide services to German nationals. This move, especially if replicated in other countries, could well render acquiring a Maltese license far less attractive.

“It’s too expensive; it doesn’t provide any value. As long as it’s not passportable, it’s a small market, so it’s not really useful,” he said.

Is Malta’s dream of becoming Blockchain island truly over?