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Malta Partners With Crypto Security Firm to Monitor Financial Crimes Risk


The crypto friendly country Malta is partnering with security firm CipherTrace for technical help to solve the risk of all the financial crimes in its licensed digital asset industry. To protect consumers, investors and business partners, Malta Financial Services Authority (MFSA) is collaborating with CipherTrace’s Compliance Monitoring product. The firm announced on March 11.

According to CipherTrace’s website, the tool utilizes the blockchain analytics and forensics to look out for “suspicious” addresses and wallets. To measure the level of risks and to analyze the transactions the firm accounts ATMs, cryptocurrency exchanges, criminal addresses and money laundering. Also, to estimate the risk associated with transactions on activity related to the known addresses and wallets, the firm will utilize the analytics and machine learning.

The MFSA explained, the system de-anonymizes blockchain addresses, enabling regulators to “evaluate and monitor the trustworthiness of virtual asset businesses.”

Cuschieri, MFSA CEO Joseph said,

“Being strongly aware of the money laundering and financing of terrorism risks associated with entities operating in this sphere, the decision has been taken to engage the services of CipherTrace in order to reduce fraud and detect transactions with illegal sources of funds.”

The partnership will increase the truthworthiness on the Malta Crypto-space and provide risk ratings on Malta’s crypto operators. Now the license approval process and cryptocurrency businesses to banking services will be quick and easy.

Dave Jevans, CEO of CipherTrace said, “Cryptocurrency businesses often have difficulty establishing trust and maintaining banking relationships because of their perceived risk.”

The MFSA will track the risks relating to digital asset businesses, including cryptocurrency exchanges, collective investment schemes and initial coin offerings (ICOs).

Eventually, the firm can aid financial institutions choose which crypto businesses to trust as corporate customers. Also, in this fast growing sector, the firm will help to avoid declining best customers.

Recently in March, sources reported that blockchain firms in Malta are encountering issues with opening bank accounts.

CEO of CipherTrace, Dave Jevans pointed out that banks turn away crypto- and blockchain-related business due to a lack of proper information and knowledge. This limitation of banks and consumers can be avoided to a great extent by monitoring.