Malta Financial Services Authority Plans To Monitor Crypto Businesses

The Malta Financial Services Authority (MFSA) spoke in a recent outline, their strategy in the published article. According to the document, the plan revolves around actively monitoring & managing risks to cryptocurrency business & firms.

Malta is already a habitat to numerous crypto businesses, including Binance, the world’s biggest crypto exchange. The news further stated that investments have already been made and it is now working on the implementation of supervisory technology (SupTech) intelligence tools, to monitor theft and thwart any money laundering. This will give investors exhaustive protection from all external risks.

In the month of June, the European Commission suggested Malta tighten its anti-money laundering (AML) ruled to pace up with the economic growth in the financial sector. “Blockchain” particularly has also sustained concerns from the International Monetary Fund. And the recent failure of investigation of the international AML only aggravated the situation. During Early 2019, the International Monetary Fund spoke about the MFSA having critical loopholes in its anti-Money Laundering (AML) regulatory policies that give rise to problems in successfully fighting the Financing of Terrorism (CFT). The IMF suggested regulator implementation of actions to improve its policies, with a proactive approach.

The AI-powered intelligence tools are a big aid to automating regulatory processes & auditing the risk portfolio of the virtual currency companies in Malta operating with an authorized licensed, according to MFSA.

MFSA published the plan on Sept. 6, the three-year strategy for years 2019–2021. The MFSA spoke, it will have to work in close ranks with the unit of Financial Intelligence Analysis & other domestic & international authorities, and the recently set up Digital Innovation Authority of malta. The spokesman added:

Whilst Malta has taken unprecedented steps in bringing blockchain and crypto technology into the regulatory fold; we understand that such innovations present challenges in the prevention of money laundering and terrorism financing.

The main priority of the regulator about combating financial crime is evident, through anti-money laundering & anti-terrorism financing.

The MFSA explained that it aims to monitor, detect, and manage misconduct by firms in a timely manner and therefore minimize the possible detrimental effects on financial markets. The report further states:

“To monitor and manage business risks related to licensed virtual assets and cryptocurrency businesses, the MFSA has invested and is in the process of implementing SupTech intelligence tools. This will better position the MFSA to identify fraud, prevent money laundering and the funding of terrorism and protect consumers, investors, and market stakeholders. The implementation of SupTech intelligence tools will provide the MFSA with powerful oversight tools to automate regulatory processes and audit the risk management of virtual asset businesses that are licensed in Malta.”

The Maltese officials gave a commitment to invent a “blockchain island” and support various other high-profile crypto & blockchain businesses who have recently migrated to Malta looking for a supportive crypto jurisdiction. In 2018, several cryptocurrency exchange giants including OKEx, BitBay along with Binance started working in Malta.


Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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