On Sunday, Joseph Muscat, the Prime Minister of Malta, announced that every rental contract in Malta would soon be registered on the blockchain. The new rules requiring that all property rental contracts be registered on a blockchain are done for security considerations, local news outlet Malta Today reported on June 23.
The reformed rental laws were approved by the cabinet after a long consultation period. Joseph Muscat said that the new regulations will be announced over the coming days. For now, all that he shared is that rent contracts will have to be registered on a blockchain to protect them from tampering and ensure authorized access. Muscat said:
“This initiative ensures security, prevents record tampering, and ensures only authorized persons can access the records, said Muscat. Additionally, the distributed ledger prevents the possibility of there being contracts in place for which there is no record.”
Malta has a reputation for being a “blockchain island” for a good reason –the European country first made moves into the world of cryptocurrencies in July 2018 with the introduction of a relaxed regulatory framework for distributed ledger technologies. Electronic money, financial instruments, virtual tokens, and virtual financial assets were granted a path to legitimacy, making Malta a preferred destination for ICOs and blockchain startup registrations. By March of that year, Malta’s lawyers were reportedly tokenizing themselves.
Its tolerant regulatory environment, educated workforce, and E.U. membership all helped Malta gain a status of a burgeoning hub of blockchain experimentation.
“We will now be showing people the added value of this technology through applying it to something which they will use in their daily lives. Such a contract cannot be tampered with and only those authorised will be able to access it. This shows how the digital transformation will affect their lives.” Muscat added.
Integration of blockchain technology into real estate-related processes has been gaining traction in recent years. In June, the Dubai Land Department and telecoms firm Etisalat signed a memorandum of understanding concerning real estate blockchain tech. The goal is to implement smart government standards and introduce paperless management and digital contracts for property transactions.
Last month, the Enterprise Ethereum Alliance (EEA) presented several blockchain use cases relevant to the real estate industry in a report shared with Cointelegraph. The EEA believes that blockchain has the potential to shorten the process of recording and transferring properties while increasing transparency and making land registries trustless, among other issues.
The Malta government will reveal the full details of the proposed rent reform and scope of changes in the coming days.