Regulators are claiming $ 70 billion in crypto passed through the “Blockchain Island” – regulation Bitcoin News
The island state of Malta in the Mediterranean Sea has been known for years as being friendly to cryptocurrency solutions and blockchain technology. More than $ 70 billion has flowed through the country in recent years while regulations have been lax, according to a regional report. In addition, the Financial Action Task Force (FATF) criticized Malta at a recent confidential meeting.
Members of a confidential FATF meeting Critical of Malta
“Privy sources [a] confidential FATF meeting, ”said the Financial Regulator, concerned about Malta according to a regional report published by timesofmalta.com. The FATF held a confidential meeting and it was said that, according to the report, “around € 60 billion in cryptocurrency” (over $ 70 billion) has flowed through the borders of the island nation of Malta.
The sources of the article are unknown, but the FATF meeting attendees stressed that one of the biggest problems with Malta was that it allegedly “enabled a large volume of cryptocurrency” and did so “without adequate oversight”.
Organizations and companies with offices in Malta include crypto firms such as Okex, Coinvest, Decentralized Ventures, Yovo, Ledger Projects, Stasis, Bitmalta and the Blockchain Malta Association. Crypto solutions and blockchain technology are so popular in Malta that the country is dubbed “Blockchain Island”.
However, by the time the Maltese regulations were caught in the regulations in late April, 70% of the crypto companies in the sector had not applied for a license. So far, 26 crypto companies have applied, but none of the companies have been approved. In the summer of 2018, crypto regulations occurred in Malta.
Timesofmalta.com’s report says that unnamed crypto industry sources have insisted that Malta is now heavily regulated. In addition, she denied the FATF’s estimates for crypto transactions allegedly originating in the island nation. A report from Michael Morell, a former deputy director of the Central Intelligence Agency (CIA), stated that crypto exchanges have accessible data.
Sources do not disclose the exact timeframe or how the FATF obtained the transaction data
In addition, in 2019 the Maltese Financial Services Authority (MFSA) hired blockchain surveillance firm Ciphertrace to help regulators fight non-compliance. The job of Ciphertrace is to “monitor transactions that go through local crypto exchanges and digital wallets”.
Timesofmalta.com’s study does not reveal how the FATF came up with their transaction estimates, which allegedly show billions in cryptocurrencies are flowing through Malta. Those familiar with the subject of the FATF meeting also did not provide any information on when the funds flowed through Malta, in terms of the exact timeframe.
“Speaking of money laundering, it has long been known that cryptocurrencies like Bitcoin that use a publicly available transaction book are a highly effective tool for combating crime and gathering information,” added Morell’s report.
What do you think of the alleged $ 70 billion in crypto being transported through Malta while the regulations were less prominent? Let us know what you think on this matter in the comments below.
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