Malta Probed by FATF Over “Lax Oversight” on Crypto Transactions

After a close review, the anti-money laundering regulations in Malta have been tagged problematic. The Financial Action Task Force (FATF) condemned the lax oversight by Maltese authorities in issues relating to cryptocurrencies. The investigation followed after the European nation declared support for cryptocurrencies. 

The global regulatory body FATF said that Malta was not doing enough to prevent the fostering of financial crimes. Times of Malta reported that cryptocurrencies worth over €60 billion were moved through the country after the declared itself a “blockchain island”. Under the circumstances, Malta’s regulatory policies are not perceived to be solid enough to prevent the perpetration of criminal activities via cryptocurrencies. 

Despite that the Maltese government assured that it was doing all it could to regulate digital assets, FATF officials don’t share the same view. Of course, the link lies in the massive support the nation is throwing behind crypto. At the moment, two of the biggest cryptocurrency exchanges in the globe have quarters on Maltese soil including Binance and Huobi. 

FAFT Likely Would Consider Global Regulation

In relation to a growing trend where countries globally share diverse opinions about virtual assets, a collective narrative might become inevitable. Major economic powers like China and the United States of America are skeptical of incorporating the assets. While the former has outrightly banned the use of cryptocurrencies, the latter is slowly chewing on its decision even hesitating to approve ETFs.

The US would likely impose a framework for the regulation of digital currencies. It might also explore Central Bank Digital Currencies (CBDCs) as hinted by Senator Elizabeth Warren. The European Central Bank (ECB) is an antagonist of cryptocurrencies which it describes as “private digital assets” and wants bloc-members to consider a digital Euro. 

With the clamour for more regulatory policies, an expected framework might spring up soon. The general motive is to prevent leveraging crypto for financial crimes and another to minimise the volatility of digital assets. 

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