Malta Monetary Watchdog Intends to Strengthen Crypto Business
Malta is a small European nation. The country earned a reputation for promotion of this type of business. The government is safeguarding the digital money industry by devoting more resources in monitoring its activities.
Measures Taken to Control Risks in Digital Transactions
Necessary steps should be taken to decrease fraud in digital transactions. The measure will increase the shareholders confidence in this trade.
The government had already shown its interest in the profitable digital money business. This has influenced many stockholders to invest in this small nation. The country’s regulatory institutions have a lot to boost this important sector. The supervisory body was previously criticized for exploiting investors who lost their resources in the exchange. It is because shareholders a lot of funds in these shoddy deals. This time the institution does not want to repeat the same mistakes.
Christopher Buttigieg notes that there is a high risk involved when dealing with colossal flows of money. Therefore, the stakeholders are looking for ways of blocking money launderers and other criminals from interfering with business activities.
Few Countries are Currently Embracing Digital Money Business
Many nations across the globe are reluctant to embrace cryptocurrencies since they are not aware how it works. It is despite that the industry is growing. This demonstrates that these countries will attract more investors in their countries soon. Many new businesses are shifting their base to Malta because of a conducive business environment.
All projects must attain the set standards despite the risks involved. The primary intention is safeguard investors from fraudsters who are increasing in this industry. Consequently, MFSA is taking several steps to sanitize digital transactions and eliminate fraud.
Malta has passed various legislations to protect the blochchain trade. Some of these laws also touch on the issue of Cryptocurrencies. Such measures will increase investor’s confidence in the market.
The regulatory institution has been criticized for making various blunders in the past. These mistakes made the shareholders of various corporations to incur huge losses. Therefore, there is a need to tighten the regulations to prevent such mistakes in future
Therefore, it is facing a lot of pressure from Financial Intelligence Analysis Unit and other institutions such as the European Central Bank and parliament. These institutions want order in the financial sector.
Buttigieg observed several issues that should be corrected to eliminate fraud. He advised all the stakeholders to work towards eliminating the challenges in future. He further suggested that MFSA is already ahead of other regulators. It has developed appropriate measures of eliminating fraudulent activities in the sector.