Havingearnedthenameof “Blockchain Island”, Malta is taking steps to preserve thetradebyinvesting heavily inupcoming newtechnologiesso asto shieldthe blockchainecosystem.
Having shown a friendlyattractivenessto the blockchaintradeand already seeing anflowof activities into the Island, the Malta’s Financial Services Authority [MFSA] believes thatafterbeing heavily criticized over the years for failingto shieldvictims of thecollapsed‘La Valette’ Property Funds, theinstitutionseemsunwillingto allowany loopholesthis timearound.
The head of the MaltaFinancialServices Authority’s securities and marketssupervisionunit ‘Christopher Buttigieg’ aforementioned the risksconcernedin environments with large flowsof money. Therefore, theinstitution is functioningbeforeto damany vulnerability to criminals, launderers, terrorists, amongalternativeactors.
Therestrictedrangeof countriesthatarereceptive toblockchain and cryptocurrency activities inreference totheincreasingnature of theindustryimplies that these nationsare going to beexperiencing a high densityflowof activities.Manystartups, ICOs and even conferencesareshifting their activities towards nations like Malta.
Apart from the directfinancialrisksconcerned,the requirementto establishstrictstandards forthe projects thatrequestto host their base in such nationswouldgoa long wayinshapingthe society.
Therefore, the extent of MFSA’s activities in achievinga strictsystem formodifiedsystem thatcan’t be overemphasized.
Malta recently enacted3piecesof legislation covering blockchain and cryptocurrencies. Hence, the efforts of MFSA to tighten therestrictivesystemprior tothe industry’s expectedenlargement.
Apart from the La Valette Property Fundslayout, therestrictiveestablishmenthasconjointly undergonesignificantcriticism following alleged breaches at Pilatus Bank andotherfinancial establishments. Hence,it’s alsofacingincreasedpressure,at the side oftheFinancialIntelligence Analysis Unit, fromthe EUBanking Authority,the EUParliamentalong with theEUCentral Bank.
Thesearea number oftheeventualitiesthat Buttigieg noted that hisestablishmenthas learned from and would work towards avoiding anylikelihoodof reoccurrence. Heconjointlyexplains that MFSA has goneon a far sidecompared to otherregulators,and thatMalta has already adopted the Fifth Anti-MoneyLaunderingDirective, well before the 2019’s deadline.