Many countries inside the European Union are still struggling to come up with clear regulations that would provide a predictable set of rules for cryptocurrency businesses. However, the smaller nations of Liechtenstein and Malta seem to have sorted themselves out already.
We spoke with Marion Vogel, the head of marketing and operations at Liechtenstein-based aeternity, to find out what, in the company’s own experience, makes the small nation such an attractive place to open shop.
“I think, definitely, that the [access] that you have to talk to, for example, people in government, or the regulatory body, or also to lawyers is really, I feel, an advantage for aeternity,” she said.
Earlier this year, both Binance and OKEx opened operations in Malta, with the former planning to offer Euro pairs. The Maltese government has been very welcoming of operators in the blockchain industry, and has created an environment that helps accelerate their development.
Coupled with its tax incentives, it’s been a haven for exchanges wishing to operate in Europe without getting wrapped up in the laws of other EU entities. Speaking on why crypto companies choose such small countries to operate inside of, she had this to say:
“I think that this is because [the countries] are more flexible in their internal communication. I mean, this is my assumption, but I believe they can move faster. If you just compare Germany—a country with about 82 million people—and Liechtenstein—with about 38,000 citizens, they can feel where the trends are going and adapt to them, making them way more flexible.”
With regards to tax incentives, however, Vogel said that this wasn’t a priority for aeternity.
“This was definitely not the reason why we joined this jurisdiction. The reason why is that we had clarity on what is allowed and what is not, and someone talked to us… And when you go to, let’s say, to other jurisdictions—and this was almost two years ago, which in the crypto world is like ten years—it’s helpful to feel safe with your operations,” she added.