Malta Based Blockchain Firms Struggling With Opening Bank Accounts - Report.

Malta Based Blockchain Firms Struggling With Opening Bank Accounts - Report.

2019-03-03 | Eddy Morgan

Malta Based Blockchain Firms Struggling With Opening Bank Accounts - Report.

Malta based blockchain firms is reportedly combating with opening bank accounts, native news outlet ‘Times Of Malta’ recently 'reported'. The Times of Malta allegedly contacted several legal corporations along with monetary firms, who confirmed that banks were declining their applications to open bank accounts, stating that it had been beyond their “risk appetite.” The sources reportedly aforesaid that banks didn't differentiate between digital currency and blockchain, although they weren't continuously connected.

Parliamentary Secretary for Financial Services named ‘Silvio Schembri’ reportedly told the native media that some 'banks' were willing to open accounts for blockchain firms, however not for cryptocurrency-related ones. Schembri aforesaid that “one ought to create a transparent distinction between blockchain operators and crypto operators.”

Schembri is reportedly conducting awareness campaigns with monetary establishments “to have a much better understanding of the industry”. Schembri added:

“The general understanding is that when it involves crypto operators, banks are looking forward to operators to obtain MFSA [Malta Financial Services Authority] license before opening their doors – which is quite understandable.”

Malta has 'established' itself as a blockchain and digital currency-friendly 'hub', and is also called by the name of "blockchain island.” Recently, the MFSA 'issued' a consultation on cybersecurity, suggesting that the agency’s cybersecurity system  need to comply with international standards, together with guidelines issued by the EBA [European Banking Authority]. The guidance targeted pro funds that invest in 'cryptocurrencies', issuers, along with agents and service providers for VFAA [Virtual Financial Assets Act].

Even earlier in Dec. last year, 'Malta' along with six other European Union member states 'revealed' a declaration call for assistance within the promotion of the utilization of DLT [distributed ledger technology] within the region. Specifically, the document cites “education, transport, mobility, shipping, land registry, customs, company registry, and healthcare” as services that might be “transformed” by DLT. The document additionally cites blockchain tech’s use for shielding citizens’ privacy and creating bureaucratic procedures a lot more efficient.

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