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maltatoday | WEDNESDAY • 11 JULY 2018 2 NEWS MASSIMO COSTA THE world's first ever Initial Convert- ible Coin Offering (ICCO) platform was launched in Malta yesterday promising to be a historic landmark and "bridge the gap between traditional financial services and crypto-currencies". An Initial Coin Offering (ICO) is a means through which start-ups can source capital by selling a percentage of crypto-currency to investors in the form of tokens in exchange for legal tender. In this case, the "tokenised convertible warrant" will be regulated by a prospec- tus approved by the Malta Financial Ser- vices Authority – the country's regulator – and is subject to "stringent EU rules" and its issuance will give investors the right to convert the tokens into shares of Palladium, three years after the issue date. "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 ser- vices and crypto-currencies," Palladium founder and chairman Paolo Catalfamo said at the press conference marking the ICCO's launch. Catalfamo's company Investar, which owns 85% of the shares in Palladium, also has a controlling stake in Global Capital plc., a Maltese financial services firm. The other shareholders in Palladium are Unikrn Inc., Las Vegas-based e-sports betting company founded by Rahul Sood, a former CEO of Microsoft Ventures. Speaking at the launch, Prime Minis- ter Joseph Muscat said that Blockchain technology would create a new economic niche for Malta, which would generate more jobs and wealth. The government and all other stake- holders in the industry are paving the way for Malta to be a Blockchain island, the Prime Minister said. "The three pieces of Blockchain legis- lation which were passed in Parliament recently form the start of a new exciting journey putting Malta in the frontline," he said. Catalfamo praised the government's approach to regulating the sector, add- ing that the ICCO was one of the most unique investment opportunities in the Blockchain world. "Institutional investors recognise the scale of the opportunity, but the lack of regulation has kept them watching from the sidelines," he said. "Palladium's solu- tion will change this. Cutting-edge Block- chain technology will allow customers to use regulation-compliant, multi-asset accounts to manage fiat and crypto cur- rencies." Parliamentary secretary Silvio Schem- bri highlighted that Malta now had a legal framework for Blockchain, which showed it was embracing and anticipat- ing new technology. He said the government would, in the coming weeks be launching a "Block- chain lab", aimed at training civil servants in this technology. Schembri also said the University of Malta would be starting new degree courses on this new technology this year in order to train those working in the sec- tor. Proceeds to fund acquisition of European bank Palladium's fundraising target is €150 million, with the pre-sale of tokens start- ing today. The offering period for sub- scription of the tokenised securities will run from 25 July to 30 September. The company said that proceeds will be used to "support the three core blocks of Palladium's solution: 50% will go towards the acquisition of a controlling interest in a European bank; 35% into the forma- tion of a regulated crypto-exchange and the development of a clearing and settle- ment Blockchain platform; and 15% into strategic investments in financial services and Blockchain companies". The Palladium board of directors is made up of Catalfamo and Sood, as well as Gregory McGowan, Joseph Del Raso and Brian Jamieson. mcosta@mediatoday.com.mt Malta-based company launches 'world's first' Initial Convertible Coin Offering platform YANNICK PACE THE Environment ministry has rubbished allegations made by Nationalist Party MP Jason Azz- opardi regarding the new direc- tor at the Environment and Re- sources Authority's Directorate for Compliance and Enforce- ment, whose appointment was announced on Monday. In two separate tweets, Azzo- pardi claimed that Mario Schem- bri was a f o r m e r c l i e n t o f Environment minister Jose Her- rera and that he had been refused Security Services clearance "pre- 2008 for a serious reason". Azzo- pardi claimed that Herrera was aware of the reason Schembri was not given the clearance. "We deserve to know, in rela- tion to the appointment of Min Herrera's buddy as Environment enforcer: a) his academic qualifi- cations in the Environment field b) his environmental expertise c) composition of Board who se- lected him d) what were the re- quired parameters" Azzopardi's second tweet read. Replying to questions sent by MaltaToday, the ministry said that Azzopardi's "futile allega- tions" were aimed at "distracting or distorting" the directo- rate's functions. It noted that ERA had received 18 applications for the post and that Schembri had been selected through a "trans- parent rigorous process" by an evaluating board made up of ERA chairman Professor Victor Axiaq, ERA CEO Louise Spiteri and the ministry's permanent secretary, Joseph Caruana. It also said that the Schembri had vast experience in enforce- ment, "dating back to 1979", pointing out that he had begun his career as a police officer, eventually moving to the Armed Forces of Malta in 1985. "During his 27 years of service he actively took part and led several enforcement operations at sea and on land. During his years at the Maritime Squadron, he was also actively involved in combating oil pollution at sea," the ministry said. Azzopardi insisted with Mal- taToday, however, that Schem- bri's experience with the Armed Forces was not enough to qualify him for the role, which he said was a complex one that required knowledge of EU environment legislation, knowledge of Malta's flora and fauna as well as a num- ber of different areas of expertise. Refusal of security clearance Azzopardi also reiterated that Schembri was refused security clearance for a serious reason but would not elaborate further. In 2006 both Schembri and Per- rie Vassallo – who is currently the minister's chief of staff – had been informed that they were not eligible for positions that gave them access to confidential information, after they failing security clearance performed as part of Malta's EU accession re- quirements. Responding to questions by this newspaper, the ministry said that Schembri had "filed applications in court in this regard whereby to date, no justification was given". "Despite this, one must point out that Lt Col Schembri served the Armed Forces of Malta for a considerable number of years, without any restrictions, and was commended for his sterling ser- vice." The ministry has said that Schembri's case had been lost over a procedure point, with the court remarking that the refusal by the security services to issue Schembri security clearance did not mean that the decision could not be contested in separate court proceedings. During the court proceedings it had emerged that the two of- ficials had contested the con- clusions of Malta's intelligence agency with a special Ombuds- man appointed under the terms of the Security Service Act, but he too had confirmed lack of se- curity clearance. Environment ministry rubbishes PN MP's claims on new ERA compliance director's past THE Environment ministry has rubbished allegations made by Nationalist Party MP Jason Azz- opardi regarding the new direc- tor at the Environment and Re- sources Authority's Directorate for Compliance and Enforce- ment, whose appointment was announced on Monday. In two separate tweets, Azzo- pardi claimed that Mario Schem- bri was a f o r m e r c l i e n t o f Security Services clearance "pre- 2008 for a serious reason". Azzo- pardi claimed that Herrera was aware of the reason Schembri was not given the clearance. "We deserve to know, in rela- tion to the appointment of Min Herrera's buddy as Environment enforcer: a) his academic qualifi- cations in the Environment field b) his environmental expertise c) composition of Board who se- lected him d) what were the re- quired parameters" Azzopardi's second tweet read. Replying to questions sent by MaltaToday, the ministry said that Azzopardi's "futile allega- tions" were aimed at "distracting or distorting" the directo- rate's functions.