With this measure, the government offers greater security and legitimacy to rental processes, by avoiding the manipulation of records
In Malta, a new provision states that all rental agreements are registered on a blockchain platform, with the aim to protect them from manipulation and also guarantee access only to authorized staff.
Malta continues with its plan to become the “Blockchain Island, taking advantage of what Distributed Ledger Technology (DLT) offers to store and manage information quickly and safely. Once again, the European country surprises with a project that seeks to guarantee the legitimacy of rental contracts.
The Prime Minister of Malta, Joseph Muscat, announced that all rental contracts in that country will be registered in a blockchain system. The official gave the announcement recently during a radio interview.
“Now, we will show people the value of this technology, applying it to something they will use in their daily lives. This contract can’t be manipulated and only authorized people can access it. This shows how digital transformation will affect their lives”, he said.
According to Muscat, the country’s cabinet approved the reformulation of the laws concerning the rental of furniture, after a long period of consultation by lawmakers. The new regulations would be announced in the coming days.
A “Friendly Country” with Blockchain
Malta is known as a country compatible with blockchain technology and digital currencies. In June 2018, Malta launched its first friendly regulatory framework in favor of blockchain technology and digital currencies.
The Parliamentary Secretary for Financial Services, Digital Economy and Innovation, Silvio Schembri, commented that by the end of 2018 the number of blockchain companies operating in Malta amounted to 800.
In early April, Malta’s Financial Services Authority (MFSA) granted licenses to 14 cryptocurrency agents in order to promote the growth of the sector. This time, the country will become the first one, in the whole world, to have a government agency based on blockchain technology for business registration.
Last May, the government of Malta announced 19 student scholarships for blockchain training worth 160,000 euros, equivalent to US $ 179,000.
Aspects such as digital money, financial instruments, virtual tokens and digital assets already have a space within the current laws; even some lawyers in the country are working on recommendations associated with the management of different types of cryptoactive.
Currently, the nation has a friendly regulatory environment, a workforce familiar with these technologies, students training for the management of blockchain and the creation of new projects, among other legal benefits for the European territory.
For these reasons, at the beginning of June the European Union (EU) recommended to the Maltese authorities to also develop mechanisms that function as protection to prevent crypto-crimes.
However, in February, the Financial Services Authority of Malta conducted a test and suggested that the cybersecurity system should comply with international standards, including the guidelines of the European Banking Authority.
In other countries, the use of blockchain technology in real estate-related processes has increased in recent months. In early June, the Dubai Land Department and the telecommunications company Etisalat signed a Memorandum of Understanding related to blockchain technology and the real estate sector.
Some companies consider that Malta could become a central point for experiments associated with blockchain technology. The Enterprise Ethereum Alliance (EEA) believes that blockchain has the potential to accelerate the process of registering and transferring properties whilst increasing transparency and making land records reliable, among other aspects.
By María Rodríguez