Having earned the name of “Blockchain Island”, Malta is taking steps to preserve the trade by investing heavily in upcoming new technologies so as to shield the blockchain ecosystem.
Having shown a friendly attractiveness to the blockchain trade and already seeing an flow of activities into the Island, the Malta’s Financial Services Authority [MFSA] believes that after being heavily criticized over the years for failing to shield victims of the collapsed ‘La Valette’ Property Funds, the institution seems unwilling to allow any loopholes this time around.
The head of the Malta Financial Services Authority’s securities and markets supervision unit ‘Christopher Buttigieg’ aforementioned the risks concerned in environments with large flows of money. Therefore, the institution is functioning before to dam any vulnerability to criminals, launderers, terrorists, among alternative actors.
The restricted range of countries that are receptive to blockchain and cryptocurrency activities in reference to the increasing nature of the industry implies that these nations are going to be experiencing a high density flow of activities. Many startups, ICOs and even conferences are shifting their activities towards nations like Malta.
Apart from the direct financial risks concerned, the requirement to establish strict standards for the projects that request to host their base in such nations would go a long way in shaping the society.
Therefore, the extent of MFSA’s activities in achieving a strict system for modified system that can’t be overemphasized.
Malta recently enacted 3 pieces of legislation covering blockchain and cryptocurrencies. Hence, the efforts of MFSA to tighten the restrictive system prior to the industry’s expected enlargement.
Apart from the La Valette Property Funds layout, the restrictive establishment has conjointly undergone significant criticism following alleged breaches at Pilatus Bank and other financial establishments. Hence, it’s also facing increased pressure, at the side of the Financial Intelligence Analysis Unit, from the EU Banking Authority, the EU Parliament along with the EU Central Bank.
These are a number of the eventualities that Buttigieg noted that his establishment has learned from and would work towards avoiding any likelihood of reoccurrence. He conjointly explains that MFSA has gone on a far side compared to other regulators, and that Malta has already adopted the Fifth Anti-Money Laundering Directive, well before the 2019’s deadline.