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Malta: The Jurisdiction Of Choice For Blockchain Businesses?

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The below interview has been conducted by Jo Caruana (MaltaChamber.org.mt) – View original source here.

Dr Joseph F. Borg, an advocate and partner at WH Partners, talks through the history of Blockchain and highlights its potential path for the future.

There is an absolute buzz about cryptocurrencies at the moment, as well as whether to invest in them, or to put them down to a scam. Either way, the business world is fascinated.

One expert on the subject is Dr Joseph F. Borg, an advocate and partner at WH Partners, who heads the Blockchain Advisory and the Gaming and Gambling Advisory sections of the firm. On top of that, he is the Vice-President and Co-Founder of BitMalta, which is a non-profit organisation that promotes and stimulates discussion about Blockchain technology and cryptocurrencies in Malta.

“Let’s begin by explaining what a cryptocurrency actually is,” Dr Borg says. “Essentially, it is a type of convertible virtual currency secured by cryptography that is built on top of the Blockchain – a type of distributed ledger technology which does away with the need for a third-party clearinghouse and central issuer. As a result of their underlying decentralised technology, cryptocurrencies have introduced much-needed competition in the digital payments industry and have the potential to contribute positively to citizens’ welfare and economic development, including in the financial sector. Some of the most popular touted benefits of cryptocurrencies are their ability to lower transaction and operational costs, to promote financial inclusion, to enhance the resilience and speed of payment systems, and to increase users’ security and privacy, among others.”

Nevertheless, the idea presented by cryptocurrencies – the first of which was Bitcoin – was not in fact new. A number of similar virtual currency systems including e-Cash, Bit Gold and RPOW, were introduced in the 1990s.

“The true innovation of cryptocurrencies following the ‘Bitcoin model’ is their innovative approach to addressing the ‘double spending problem’,” Dr Borg continues. “This refers to the inherent difficulty of sending money or anything valuable over the internet since a digital asset essentially comprises a digital file that can be duplicated or falsified.”

Pre-Bitcoin, existing virtual currency systems required the use of an intermediary or clearinghouse to manage and verify the transaction (and ensure that the same money was not spent twice). The Blockchain, which underlies cryptocurrencies, does away with the need for such an intermediary by keeping a record of every transaction on a time-stamped database that is dispersed among the different users of the network. “Blockchain’s solution to the ‘double spending problem’ has been described as its ‘revolutionary promise’ and the hype factor surrounding the technology has now led multiple companies to unveil a multitude of Blockchain initiatives,” the advocate continues.

“The hype is really about Blockchain and not cryptocurrencies per se. Cryptocurrencies are really the very first application of Blockchain technology, and which have the potential to disrupt the payments industry, once they have achieved the level of mainstream use.”

On the other hand, Blockchain has more widespread potential applications, in myriad industries, including but not limited to the spheres of finance, healthcare, energy and entertainment. “The buzz surrounding Blockchain technologies continues to grow, and this is most evidently illustrated by the rapid increase in the creation of not only new cryptocurrencies (the so-called ‘altcoins’), but also by the creation of self-executing digital contracts (smart contracts), intelligent assets which may be controlled over the Internet (smart property), and decentralised autonomous organisations (DAOs) which can operate over a network of computers without human intervention, among many other applications,” Dr Borg says.

Locally, Government approved its National Blockchain Strategy in April 2017 and, just a few months later, launched a Blockchain Taskforce with a view to establish the Maltese legal system as the leading international hub for digital technology innovation.

“Currently, the only concrete step undertaken by Government towards achieving a comprehensive regulatory framework for operators wishing to provide services incorporating Blockchain technology is the Supplementary Rules for Collective Investment Schemes Investing in Virtual Currencies, issued by the local financial regulator, the Malta Financial Services Authority (MFSA),” Dr Borg says.

Following on from this, a consultation document was published on 16th February 2018 proposing three legislative instruments: the Malta Digital Innovation Authority (MDIA) Bill, the Technology Arrangements (TAs) Bill and the Virtual Currency (VC) Bill. The MDIA Act is envisaged to provide for the establishment of a national regulatory body that will oversee the voluntary certification of TAs such as smart contracts and cryptocurrency platforms, and the registration of Technology Service Providers (TSPs) including the auditors and administrators of TAs. The MDIA will be responsible, inter alia, for the protection of users and consumers which interface or use DLT, the harmonisation of practices and the adoption of standards in the Maltese sector, and the promotion of legal certainty in the application of laws to DLT businesses, in both a national and a cross-border context.

“Mindful that the disruptive nature of Blockchain technology renders it apt to have spill-over effects in an array of sectors, the MDIA Act is proposed to prescribe a Joint Coordination Board with the responsibility of fostering effective cooperation between National Competent Authorities like the MFSA and the Malta Gaming Authority (MGA),” Dr Borg continues. “The consultation document also proposes a VC Act which will largely follow the principles laid down in the MFSA’s discussion paper on ICOs, virtual currencies and related service providers. It is projected that the VC Act will provide for a Financial Instruments Test which will determine whether a particular cryptocurrency, within the context of an ICO or on a stand-alone basis, constitutes a ‘financial instrument’ which must comply with applicable local and EU investment services legislation.

“With this in mind, Government evidently looks favourably upon Blockchain-based businesses and is actively seeking to create a workable regulatory framework to further promote this nascent industry and to become a pioneer in regulating DLT and Blockchain technology. While other jurisdictions have chosen to regulate Blockchain-related operations in a piecemeal fashion, focusing only on the areas that the respective governments/states consider to be of importance (such as issues of taxation or money laundering), the Maltese Government is considering a holistic, all-encompassing regulatory approach to creating the most attractive environment for Blockchain start-ups to choose Malta as their base. Evidently, the recent announcement by cryptocurrency exchange Binance (the largest cryptocurrency in the world in terms of volume) is proof that Malta is indeed becoming a melting pot for Blockchain businesses, start-ups and industry giants alike.”

Finally, Dr Borg assesses the main challenges that lie ahead of making Malta the jurisdiction of choice for companies engaged in Blockchain technology and cryptocurrencies.

“While the debate surrounding the possibility for centralised rules to regulate decentralised technologies remains unsettled, there seems to be consensus by the stakeholders and market players of the Blockchain and cryptocurrency industry that some form of regulation (especially in the form of guidance) is important,” he says.

“The greatest challenge to make Malta the jurisdiction of choice for Blockchain-based businesses therefore rests in any proposed regulatory framework not falling prey to over-regulation. The test for local policymakers and regulators will be the development of a regulatory system which addresses the primary policy concerns of Blockchain technologies (such as money laundering and illicit activities), without smothering the benefits which the new technology and its various applications are poised to provide to legitimate users, including companies.”

Source:  MaltaChamber.org.mt

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Nexus International, Led by Gurhan Kiziloz, Secures Gaming License with $1.45 Billion Target for 2025

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Nexus International, Led by Gurhan Kiziloz, Secures Gaming License with $1.45 Billion Target for 2025

Gurhan Kiziloz, the key figure behind Nexus International, is strengthening his foothold in the online gaming industry, driving the company’s aggressive expansion strategy. Under his leadership, Nexus International manages Megaposta and Lanistar, two platforms that have significantly contributed to revenue growth. In 2024, the company recorded $400 million in revenue, and with Kiziloz’s expansion efforts, forecasts indicate that this figure could surge to $1.45 billion in 2025.

A crucial step in this trajectory is securing a Brazilian gaming license, granting Nexus International entry into one of the most regulated betting markets worldwide. Obtaining this license required compliance with strict financial and operational standards set by Brazilian regulators—an undertaking Kiziloz personally oversaw as part of his broader goal to establish the company in regulated spaces. With this authorization, Nexus International can legally operate and scale within Brazil, a market now focused on restricting unlicensed operators.

Kiziloz’s Influence on Nexus International’s Growth

Kiziloz has engaged in various industries, with his transition into online gaming reflecting a strategic response to shifting regulatory landscapes. Before stepping into the online gaming sector, he developed Lanistar as a fintech company, but under his leadership, it has since evolved into the gaming space. This shift aligns with his broader approach to restructuring and scaling business models in response to market demands.

His direct involvement has fueled the company’s expansion across Latin America. Megaposta has already established a presence in multiple countries, and with the newly acquired Brazilian license, Kiziloz has positioned Nexus International for further market penetration. His role has been instrumental in securing partnerships, ensuring compliance, and crafting strategies to compete with dominant players in the gaming industry.

However, this approach is not without its challenges. Brazil enforces stringent regulations covering advertising, taxation, and consumer protection. Any compliance violations could result in financial penalties or even the revocation of the company’s license. Kiziloz now faces the responsibility of maintaining Nexus International’s legal standing while navigating an increasingly competitive and tightly regulated market.

Strategies for Expanding Nexus International

Under Kiziloz’s leadership, Nexus International is targeting regions where legal online gaming is gaining traction. Megaposta has already gained significant market share in Latin America, and the newly obtained Brazilian license enables the company to operate openly, unlike unlicensed competitors who face restrictions.

Lanistar’s transformation from a fintech venture into an online gaming platform was a calculated step, allowing Nexus International to solidify its presence in sports betting and casino gaming. While Lanistar has shifted focus, it continues to operate as a fintech platform under Lanistar.app, maintaining its presence in the financial sector. By managing two platforms under the same corporate umbrella, Kiziloz diversifies revenue streams and expands market reach.

Brazil’s updated gaming regulations have created a landscape where only licensed operators can legally provide betting services. By securing Nexus International’s position within this regulatory framework, Kiziloz ensures the company can advertise, form local partnerships, and expand its customer base without the legal uncertainties of unlicensed operations. However, this also means facing higher operational costs and stricter regulatory constraints.

The Financial Targets & Hurdles Facing Kiziloz

Kiziloz aims to push Nexus International’s revenue to $1.45 billion through a combination of geographic expansion and increased user engagement. His strategy hinges on drawing more users to the company’s platforms and enhancing participation in sports betting and casino games, two of the most lucrative segments in the online gaming sector.

Yet, the industry presents several hurdles. Regulatory environments remain fluid, with governments frequently revising tax structures, imposing new restrictions, or introducing additional compliance measures. Any legislative changes in Brazil could directly impact Nexus International’s profit margins.

Additionally, competition remains fierce, with well-established gaming brands boasting stronger customer loyalty and larger marketing budgets. To compete effectively, Nexus International must prioritize user retention, offer exclusive features, and implement strategic marketing efforts—while still adhering to regulatory limitations.

Cybersecurity also poses a significant challenge. Online gaming platforms are frequent targets for fraud and cyberattacks. To protect user data and maintain trust, Kiziloz must ensure substantial investment in security measures. Any failure in this area could lead to financial losses and reputational damage.

Future Expansion Plans for Nexus International

Beyond Brazil, Kiziloz is exploring opportunities to extend Nexus International’s presence into additional regulated markets. Several countries across Europe, Latin America, and Asia are refining their online gaming laws, and Kiziloz is actively evaluating the most viable regions for legal expansion.

Securing new licenses is a complex, time-intensive process requiring adherence to different tax regimes, advertising regulations, and consumer protection standards. Kiziloz must oversee negotiations, obtain legal approvals, and implement regional marketing strategies to ensure seamless entry into new markets.

While the Brazilian license has paved the way for growth, Nexus International’s success will ultimately depend on Kiziloz’s ability to navigate industry challenges. Maintaining compliance, mitigating risks, and competing against larger players will be crucial for sustaining momentum. His approach to regulatory adherence, strategic marketing, and technological investment will shape the company’s trajectory in the years ahead.

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SOFTSWISS Joins Pink October Movement

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SOFTSWISS Joins Pink October Movement

SOFTSWISS, a global tech company with over 15 years of expertise in iGaming, supports the global Pink October initiative to attract attention to preventing breast cancer.

This year’s Pink October campaign at SOFTSWISS is themed “A Minute Today, a Future Ahead” and emphasises the importance of early detection and preventative care. Breast cancer is the most common cancer affecting women, and early diagnosis is key in the fight against the disease. When it is noticed early, the 5-year relative survival rate is 99%.

Early detection involves doing monthly breast self-exams and planning regular clinical breast exams and mammograms. Half of the 2,000 SOFTSWISS employees are women, and the company will refund each of them for ultrasounds and mammograms in October and November.

Pink October at SOFTSWISS offers a wide range of activities throughout the month. In addition to reimbursing for medical examinations, an online webinar on mental health will provide valuable insights for those who face the disease. To support the international charity movement “Butterfly Support Mission”, women from SOFTSWISS will take part in a themed race.

The company’s employees also personally support the initiative. To further raise awareness, prominent female influencers from the SOFTSWISS community share information about the campaign across social media, amplifying the message of self-care and vigilance.

“Health is a crucial value beyond everything. Here, at SOFTSWISS, we aim to help and support our employees’ well-being and health every day. By promoting the Pink October initiative, we want to stress the importance of well-timed self-care and make this issue visible both within the iGaming industry and beyond,” shares Chief Marketing Officer at SOFTSWISS, Valentina Bagniya.

Notably, the iGaming industry recognised SOFTSWISS’ strong dedication to ensuring the best working conditions for its employees. A few weeks ago, SOFTSWISS received the esteemed accolade “Employer of the Year” at the SBC Awards.

Supporting the Pink October initiative for the second year in a row, SOFTSWISS continues to lead by example, emphasising the importance of preventive health measures and community support. Through this initiative, the company hopes to inspire its employees and society to take action today for a healthier tomorrow. 

 

About SOFTSWISS

SOFTSWISS is an international technology company with over 15 years of experience in developing innovative solutions for the iGaming industry. SOFTSWISS holds a number of gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 23,500 casino games, the Affilka affiliate platform, the Sportsbook software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team, based in Malta, Poland, and Georgia, counts over 2,000 employees.

 

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THE EVOLUTION OF GAMBLING IN SWITZERLAND – FROM PROHIBITION TO A DIGITAL BOOM

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THE EVOLUTION OF GAMBLING IN SWITZERLAND – FROM PROHIBITION TO A DIGITAL BOOM

 

Switzerland, renowned for its picturesque landscapes, exquisite chocolates, and financial prowess, is also home to a turbulent gambling landscape that has undergone significant changes throughout its history. Once considered immoral and prohibited on religious and social grounds, gambling in Switzerland is now steadily embracing change and adapting to modern times.

 

THE HISTORY OF SWISS BETTING

Over the centuries, the Swiss have dabbled in various forms of betting. The first Swiss casino opened in the 19th century, quickly establishing itself as a vital social and cultural hub. However, this golden era was short-lived, as just a month after the opulent Interlaken Casino’s debut in 1859, the Cantonal Government imposed a blanket ban on all forms of gambling.

Despite this prohibition, the Swiss ingeniously continued their gambling activities by wagering on a game known as “petits-chevaux”, involving miniature metal horses racing on a small circular track.

It wasn’t until the early 1990s that Switzerland began to slightly relax its gambling prohibitions, signaling a shift away from the long-standing moral stigma attached to gambling. Nonetheless, even with new legislation in place, the ban wasn’t fully overturned, allowing only limited-stakes casino gambling.

 

THE CURRENT SITUATION

As time progressed, the digital age brought forth online forms of betting, including sports betting, which led Swiss punters to spend substantial amounts abroad.

Motivated by both economic considerations and the rising number of gambling addicts, Swiss politicians decided it was time to modernize their outdated gambling regulations.

In January 2019, the Swiss government introduced a new Gaming Act that legalized online betting for the first time while blocking all foreign operators. The primary goals of the new gambling law were to enhance protection against gambling addiction and ensure a portion of gambling revenue was allocated for public welfare, all while adapting to the challenges of the digital era.

Consequently, Switzerland now boasts one of Europe’s strictest gambling regulatory frameworks, allowing only two public operators, Swisslos and Loterie Romande, to provide sports betting services. Similarly, online casino services are exclusively offered by licensed brick-and-mortar casinos.

To date, nearly 400 domains have been added to the official list of blacklisted sports betting operators, and Swiss telecommunication service providers automatically block these domains using DNS blocks.

While domain blocking is a deterrent measure, it has its limitations. Technologically adept punters can easily bypass these blocks using VPN clients. At the same time, blacklisted operators persistently seek ways to provide their services to Swiss customers, often resorting to frequent domain name changes.

With the surge of unregulated online betting in Switzerland, the need for reliable resources such as BookiesBonuses, which help Swiss punters navigate the complex betting landscape and discover the best betting options has never been more critical.

 

THE FUTURE OF GAMBLING IN SWITZERLAND

Switzerland’s gambling future remains uncertain due to stringent regulations that raise questions about their effectiveness and the pressing need for regulatory reforms that balance player protection with fostering a competitive and vibrant betting landscape.

While the intent behind these measures is to safeguard citizens, they have inadvertently limited options for Swiss punters. Consequently, a growing number of individuals have turned to international bookmakers known for providing a broader range of betting options, more competitive odds, and attractive bonuses.

In this ever-evolving industry, staying well informed about the latest developments, regulations, and the most reputable offshore bookmakers is crucial for those seeking the best sports betting experience. This knowledge empowers bettors to navigate the shifting Swiss betting scene and make well-informed decisions.

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