After years of trying to develop the blockchain industry on their small Island, Malta is finally starting to face some issues in controlling the market due to its massive growth.
Thanks to Malta’s notoriety in the European Union as a hub for financial, gambling and cryptocurrency companies, it is starting to face some pressure from the European Union to implement much more manageable anti-money laundering frameworks to ensure the security of the overall financial landscape of the continent.
However, the issue that Malta is facing is not with the budget of the project, but the manpower it so desperately needs. The commission does see some positives in the development of Malta’s regulatory landscape but also sees issues in the mass understaffing of the project.
Having poor anti-money laundering laws in a financial hub such as Malta is guaranteed to have an effect of European countries, especially those that have different laws in the financial as well as gambling fields when compared to Malta.
For example, according to norskecasino.casino, the biggest support for Malta should be coming from Norway, as it is in their primary interest to prevent any rogue Malta-based gambling companies to cater to their local population. This is due to the ban on online gaming activities.
Same can be said for most of the EU member states, that are starting to place cryptocurrencies under a strict regulatory framework, something that is not mutual with Malta.
This is not the first time that Malta has seen support from the European Union as it has been trying to implement a much more manageable framework of governing crypto and financial industries on the island.
For example, in May 2019, the country’s financial regulator, Malta Financial Services Authority announced that it will be integrating the CipherTrace framework as insurance of spotting and removing any unlicensed or unlawful crypto activities from the country.
Should Malta give up on its friendly approach to the blockchain, it’s likely that it will lose the newcomers, which would be a massive hit to the nation’s budget.
Overall, the country is under constant pressure to cater to EU demands, but it seems like the only issue right now is the staffing. Should Malta be able to “import” some major market experts as counsellors, they’d be able to introduce arguably the most crypto friendly AML policy in the European Union.
Image courtesy of Cryptocentral