Seven European countries including France, Italy, Spain, Cyprus, Malta, Spain and Portugal have established a group named ‘Mediterranean Seven’ to encourage and promote the use of blockchain technology. The seven EU countries led by Malta and France will work to implement the blockchain technology in education, mobility, transport, shipping, land registry, company registry and healthcare.
The declaration obtained by FT read, “This can result not only in the enhancement of e-government services but also increased transparency and reduced administrative burdens, better customs collection and better access to public information.”
Malta is the home of world’s largest crypto exchange Binance and has been actively working towards shifting to a blockchain infrastructure. Malta has been open-minded in approaching digital assets and blockchain regulation. The flexible and practical regulatory frameworks of the country have encouraged major crypto-related businesses to shift their operational bases to the region in the past eleven months.
With this initiative, Malta and France could cause a positive effect on the European cryptocurrency and blockchain sector as a whole. And as it indirectly demonstrates the approval of the other involved countries, the growth of local cryptocurrency market is on its way. The formation of this collaboration follows the call of G20.
Silvio Schembri, Innovation Minister of Malta said, “Malta is the first world legislator to offer a regulatory environment for all blockchain technology. We are not only interested in cryptocurrencies.”
If we talk about France, the country has approved an ICO regulation (Initial Coin Offering Regulation) in September this year to become Europe’s very first ICO hub. France is now hoping that Mediterranean Seven will establish a legal framework for ICOs and attract crypto enthusiasts and investors from all over the world, according to France’s Finance Minister Bruno Le Maire.
Europe has introduced a lot of crypto-supporting initiatives. However, the countries in the European Union lacks behind the United States, South Korean, Singapore, Japan and Switzerland when it comes to cryptocurrencies and blockchain. Despite the efforts of several European countries, the continent will struggle for years to compete.
A majority of the cryptocurrency exchange volume throughout the world is concentrated in the United States, South Korea and Japan. And most of the blockchain related businesses are either established in Japan or Singapore due to the flexible and business-friendly laws and regulation in these countries.
Europe’s cryptocurrency market is weak if compared to Asia and the U.S. This largely is too because of the low population in the region. However, the Mediterranean Seven could reunite and reignite the blockchain and blockchain ecosystem of the European Union and could attract more blockchain and crypto-related startups.