The emerging world of blockchain industry had seen different kinds of investment and crowdfunding approaches. The nowadays most popular instrument which is ICO had surely been around for some time and literally rocketed to the moon during the last year, but it’s certainly not the only and top tool to collect money from the investors around the globe.
Malta is known, amongst many other reasons, to be the country which recently applied specific official regulatory measures to make the fundraising for blockchain-based projects fully legislatively regulated within its territory. That implies the first milestone in the industry – the ICCO which stands for Initial Convertible Coin Offering.
The first in the history ICCO was announced by the blockchain company Palladium, and the leading bitcoin-exchange Bittrex – as the first fully regulated environment in Malta.
As stated in the Bittrex press release, the difference between convertible coins is that within three years after the release holders of these coins can at any time change them for shares of Palladium company.
Moreover, Malta is enacting comprehensive blockchain legislation and has a dedicated blockchain unit at the MFSA. This ICCO is one of the unique investment opportunities in the blockchain world. The University of Malta will also offer a special Blockchain degree which will start in October this year.
An ICCO model differs from the now-more-traditional Initial Coin Offering in that investors will be able to convert tokens into company shares at a later date – in Palladium’s case, three years after the sale.
“We expect this project, which will create more than 100 job opportunities, to be a historic landmark and to bridge the gap between traditional financial services and cryptocurrencies,” – founder and chairman Paolo Catalfamo commented. Moreover, he also spoke very positively about Malta, as a country located at the front of blockchain technologies.
The launch of the project was attended by the Prime Minister of Malta Joseph Muscat, Secretary of the Parliament for Digital Innovation and Finance Silvio Schembri, and the head of the Maltese Financial Services Department Joseph Kushiri.
“This ICCO will become one of the largest investment opportunities in the world of the blockchain. Institutional investors understand all the advantages of investing in the cryptocurrency industry, but the lack of regulation discourages them. The decision of Palladium will change this and allow users to use their accounts to manage cryptocurrency and fiat assets in full compliance with regulatory requirements, ‘says Paolo Catalano.
The goal of this particular ICCO is to collect financing of $ 150 million. The official campaign is scheduled for the period from July 25 to September 30, and the prescription of tokens began on Tuesday, July 10.
‘Our cooperation will lead to a new trading platform based on blockbuster technology, and users of this site will have access to many tokens available at Bittrex,’ said Bill Shihara, CEO of Bittrex.
Malta had adopted the new legislative acts governing the cryptocurrency industry only last week. Silvio Schembri noted back then that Malta had become one of the first countries with such official regulation.
No doubt, during the next months we are about to witness if this recent approach would be appreciated by any other countries which try to apply the ICO regulation rules or other legislative measures within their territory.