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Malta was said to have been singled out by the FATF for its lax oversight of cryptocurrency transactions, according to local media.
The Times of Malta reports that around 60 billion cryptocurrencies have passed through Malta. The country is a haven for cryptocurrency enthusiasts and businesses alike as it has introduced several regulatory frameworks conducive to economic growth.
Malta under fire
The report notes that global experts have examined Malta’s anti-money laundering controls as the influx of crypto into the country was found to be problematic. Officials from the Financial Action Task Force (FATF), a global regulatory body aimed at preventing financial crime, said the country should be on a list for not doing enough to tackle financial crime.
FATF officials appeared to have flagged Malta as such due to its swift decision to become a cryptocurrency hotbed. Maltese officials have defended their decision, saying all the necessary regulations have been put in place. In addition, they said that the monetary amount is only 2% of global annual transactions.
Sources told the publication that FATF officials saw weaknesses in the country’s setup, while those in the country said none of the cases in question were major. A key issue that was mentioned was the lack of oversight in the trading of assets.
Malta’s decision to support the cryptocurrency industry by devising friendly regulations after the 2017 boom, led it to become the island of the blockchain. Many big names in the cryptocurrency industry have moved to the country, including Binance and OKEx, two of the world’s largest exchanges in terms of trading volume.
Global regulation underway
The meeting between Malta and the FATF is proof that the authorities are now working on a global plan to regulate cryptocurrency. For many years, authorities, even those in large countries like the United States, refrained from regulating. But historic decisions and statements from senior officials indicate that everything will change in the years to come.
The story continues
Most notably, the United States has hinted that it will develop a broad framework for the regulation of cryptocurrencies, courtesy of the Biden administration. Senator Elizabeth Warren also spoke about CBDCs, which the United States has yet to officially announce.
Meanwhile, China is shutting down mining operations in various provinces as it prepares to launch its own CBDC, which is one of the most experienced in the world. Europe, on the other hand, sees several countries developing their own CBDCs while the European Central Bank touts the advantages of a digital euro over private alternatives.
At the same time, securities regulators like the US SEC and the Ontario Securities Commission are cracking down on projects and exchanges that could violate securities laws. This global push for regulation is a sign that the market could suffer severe consequences, but perhaps not draconian laws that could have a devastating impact.
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