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FATF Singles Out Malta for Sloppiness In Regulating Crypto Transactions

According to the times of Malta, about 61 billion euros’ worth of cryptocurrencies has been routed through Malta. Most of the country’s crypto regulatory frameworks are favorable, with the authorities citing improved economic growth as the reasons for its decision.

FATF Scrutinizes Malta Closely

The news outlet also revealed that global financial experts had deemed Malta’s anti-money laundering efforts problematic going by the volume of crypto transactions going on there. In addition, leading figures from the financial action task force (on money laundering) (FATF) are reportedly unhappy about Malta’s anti-money laundering policy, stating that it is far too relaxed.

One possible reason for FATF’s increased scrutiny on Malta might be the high influx of crypto passing across the country. However, Maltese authorities have stated that they’ve put in place all the necessary oversight. They also said the worth of crypto transactions in the country accounts for just 2.5% of annual crypto transactions worldwide.

Sources for the times of Malta revealed that the global financial regulatory body discovered a loophole in Malta’s anti-money laundering laws. Still, the country’s authorities have said that crypto-related fraud cases were minimal, and the FATF should be worried about money laundering in Malta. The FATF stated that the major loophole in Malta’s crypto regulation is the unavailability of oversight over transfers of digital assets.

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Malta is called the blockchain island because of its favorable crypto regulations since 2017 when the industry started booming. The country’s favorable crypto policies explain why the leading crypto firms have set up shop there, including the top two crypto exchanges by volume – Binance and OKEx.

Global Cryptocurrency Regulation

The FATF has already met with Maltese authorities, which is proof that there would soon be standard cryptocurrency policies for all countries of the world. Unfortunately, authorities in leading economic countries such as the united states have been dragging their feet on developing crypto regulations. However, vital decisions and opinions from top government heads show that there would soon be changes.

It is worth noting that the Biden-led administration has indirectly suggested that it plans to create an expansive crypto regulation that all countries of the world can adopt. Even senator Elizabeth warren has hinted of a possible American CBDC even though the government is yet to make any official announcement about it.

However, China is conducting the most aggressive CBDC trial in the world by shutting down mining operations in the country. Conversely, the European central bank (ECB) only says that having a digital euro is more beneficial than the CBDCs from each European country. But while the ECB is yet to take any concrete steps to actualize that plan, several other countries outside Europe are testing their CBDCs already.

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Meanwhile, Ontario securities, the U.S. Security and Exchange Commission, and other securities regulators, remain on the lookout for exchanges that might violate financial laws. This increased agitation for crypto regulation proves that the crypto market is in for some strict control measures even if the measures aren’t draconian.


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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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