Major Malta-Based Blockchain Company Bans Maltese Residents From Its App
One of Malta’s biggest blockchain companies has informed Maltese residents that they will no longer be allowed to use its sports engagement platform.
“We have identified that you are a Maltese resident and are therefore not permitted to use our services,” Socios told users in an email. “A technical error in our systems meant that you were able to open a Socios.com account, which we unfortunately need to close with immediate effect.”
“While thanking you for being a part of the Socios.com family, we are hopeful that we will once again be able to offer our services to you at some point in the future.”
A spokesperson for Socios said this decision was due to a need to streamline its operations and was completely unrelated to Malta’s recent FATF greylisting or global status as a financial jurisdiction.
“2021 has been a landmark year for our business,” a Socios spokesperson told Lovin Malta. “We have trebled our roster of partners, with more than 60 major sporting organisations, from football, esports, MMA, motorsports, cricket and NBA, embracing our mission to transition passive fans into active fans on Socios.com.”
“During this unprecedented period of hypergrowth we have established Socios.com as a major brand name in the global sports industry, growing our customer base significantly. In order for this growth to remain sustainable, it is key that we streamline our operations and focus on our biggest markets, both inside and outside Europe.”
“Europe’s broader stance on blockchain is developing, and in the future, we very much hope to be able to offer our services to Maltese residents. Malta’s status as a financial jurisdiction had no bearing on our decision. Malta is and will continue to be fundamental to our success, providing a rich pool of talent and a world-class framework for sustained growth.”
Inter's Ivan Perisic wearing Socios' logo on his shirt (Photo: Inter Milan)
Socios is run by Chiliz, a blockchain fintech provider run by entrepreneuer Alexandre Dreyfus whose Gżira headquarters were inaugurated by former Prime Minister Joseph Muscat in 2019 and which is one of the few success stories of the ‘Blockchain Island’ concept.
The platform allows sports fans to engage with their favourite teams by voting on certain decisions – such as new designs for entrance tunnels, goal celebration songs played at stadiums and the renaming of training pitches – and by offering them exclusive rewards.
It uses the Chiliz cryptocurrency $CHZ, which is ranked in the top 100 cryptocurrencies by market cap, as its exclusive in-platform currency.
It has struck deals with some of the world’s biggest football clubs, including Barcelona, Juventus, AC Milan, PSG, Manchester City and Arsenal, as well as basketball clubs Philadelphia 76ers, Chicago Bulls. They have also become the main shirt sponsor of Inter Milan.
Cover photo: Former Prime Minister Joseph Muscat inaugurating Chiliz’s Gżira headquarters in 2019
Have you been impacted by this ban?
READ NEXT: Court Rejects Degiorgio Brothers’ Pre-Trial Pleas In Caruana Galizia Murder Case
