MDX Moves with Malta Stock Exchange to Launch Digital Exchange Division Based on IMF’s Comments
The Malta Digital Exchange (MDX) and the Malta Stock Exchange (MSE) are working together in order to launch the digital exchange division. The information was released on March 5 by the Times of Malta.
Digital Exchange Division a Step Closer from Reality
The MDX could soon receive a securities license that will be used to promote a multilateral trading platform and create a secondary market for digital assets and trading activities. Rick Klink, the founder of MDX, explained that the intention to launch this new service shows that they are ready to become leaders in the next wave of financial institution innovation.
The decision to move into this direction comes just after a statement released by the International Monetary Fund (IMF) in which they mention that the Malta Financial Sevices Authority (MFSA) has gaps in the supervision for Anti-Money Laundering (AML). At the same time, the institution seems to be having problems to fight against the financing of terrorism.
According to the IMF, Malta has to employ more resources to supervise blockchain technology and cryptocurrency services providers in the country Moreover, there should be enhanced screening processes to monitor risk-sensitive accounts. These accounts include new technologies, e-gaming and IIP-related funds.
Malta has been working in order to increase the numbers of firms working in the country that are related to cryptocurrencies and blockchain technology. However, there are some banks in the country that are declining to open accounts to these kinds of companies. According to some reports, the banks did not make a clear distinction between blockchain technology and digital assets.
Malta is trying to become a hub for blockchain and cryptocurrencies. There are several firms that have already located their operations in the country with the intention of working under a clear and friendly legal system. Several countries have been increasing the regulations that they impose on these technologies. For example, China banned crypto-related activities and South Korea banned Initial Coin Offerings (ICOs) from operating in its country.
There are other countries and jurisdictions such as Switzerland that are also being very welcoming with virtual currency-related companies.