Malta’s Financial Authority Appoints CipherTrace As New Cryptocurrency Company Compliance Monitor

Financial Regulator From Malta Appoints CipherTrace As A Compliance Monitor For Crypto Companies

A new firm has been appointed to monitor crypto companies in Malta by the country’s Financial Services Authority (MFSA). The new company which will be in charge of this activity will be CipherTrace, as reported by the local news outlet The Times of Malta.

Starting now, CipherTrace will become the responsible party that works to oversee audit risk management for digital assets in the country and also to be responsible for all the regulatory processes of these companies.

The CEO of CipherTrace, Joseph Cuschier, has explained that the company will have an important position in being a third-party regulator that will ease the burden of the government in seeing how the companies that are planning to start their business in Malta can be compliant with the local law.

CipherTrace is a blockchain company based in the United States and the main goal of its operations will be in order to fight money laundering activities in Malta and to control and curb terrorism financing risks and other similar illegal activities that might involve companies working in the local crypto market.

According to the reports, the MFSA intends to cooperate with CipherTrace in order to coordinate Initial Coin Offerings (ICOs) and other work of crypto exchanges and virtual financial agents

The Times of Malta has reported that around two-thirds of the virtual financial agents in the country were not actually able to set up crypto certifications, which is a worrisome number. However, the MFSA is expected to issue several new licenses until the end of the month, which would increase the number of crypto operators in the country.

As soon as a virtual agent has a license, it can finally start its business in the country. At the moment, you need the license for several crypto related businesses like offering wallet services, creating ICOs and even a crypto exchange or offering any kind of brokerage service that includes cryptocurrencies.

Gaps In Oversight In Malta

There is a reason why Malta has decided to call a company from the outside to help in the regulation of the country’s blockchain market. Recently, the International Monetary Fund (IMF) has recently affirmed that the country and the regulator had critical gaps in their oversight of anti-terrorism financing and anti-money laundering laws.

At the time, the country was heavily criticized for not doing a good job of regulating the sector properly and being protected against money laundering. Calling CipherTrace is, in part, a response to that.

Another problem that is happening at the moment in the country is that some blockchain-related businesses are being rejected by banks. Despite Malta being hailed as the Blockchain Island, it seems like someone forgot to tell the banks that.

With more regulation and a stronger crypto industry in Malta, the country will surely be able to overcome these problems and create a better future, though.

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