Malta Crypto Regulations Raises Concerns Over Money Laundering & Other Financial Crimes.
2021-06-20 | Selina Mathew
Malta' strategy to become
a worldwide enclave for crypto assets appears to be working, via tax regulatory oversight has raised concerns over
money laundering along with other financial-related crimes.
Roughly $71 Bln, or 60 Bln euros, worth of digital assets have
been approved via Malta since the small Mediterranean state primarily adopted its “blockchain island” strategy earlier in 2017,
the Times of Malta
reported earlier on Sunday. Although Malta has upgraded its crypto-focused regulations in recent years, financial watchdogs are concerned about whether the nation’s AML [Anti-Money Laundering] regime has been robust enough.
The FATF [Financial Action Task Force], met in Paris last week
to debate whether Malta should be
placed beneath the list of nations that have fallen
in need of their obligations
to prevent financial crime. Specifically, the financial watchdog
cares about Malta’s initial push to embrace crypto assets in 2017 and 2018 when
the world was far less regulated. FATF officials also expressed concerns over the country’s
enforcement regime.
Several
blockchain companies established operations in Malta since 2018,
along with the cryptocurrency exchange Binance, in anticipation of more favorable laws. Companies that set up businesses within the country were allowed
to work without a license for a year. An industry source told
the Time of Malta that the one-year grace period contributed to "an explosion of high-risk transactions
administered by cryptocurrency exchanges in an unlicensed environment."
Nevertheless, Malta
remains considered
a positive destination for cryptocurrency-related asset firms. As reported, Crypto.com recently acquired Malta’s Class 3 Virtual Financial Asset License, paving the way for broader recognition of crypto assets across
the EU.
Also earlier in June last year, Malta broadened its blockchain ambitions, pivoting to digital assets more holistically as to
how to drive adoption and business growth. “We’re moving far away
from blockchain island, and more towards a digital island as we believe more
within this holistic vision
that has all aspects and technological components,” Kearon Bruno, chairman of Digital Economy
Think Tank tasked with growing Malta’s economic portfolio, explained at the time of interview.
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