The financial watchdog of Malta – MFSA is in the deal with the blockchain security firm called CipherTrace, to monitor the regulatory compliance of the cryptocurrency-related business firms, which operate in Malta, which is a crypto-friendly republic.

MFSA using the CipherTrace’s monitoring solution to oversee and manage business risks

The MFSA or Malta Financial Services Authority is going to utilize the compliance monitoring solution of CipherTrace to supervise, as well as principal business risks of the licensed virtual asset business and crypto of the republic.

Initially being funded by the U.S. Department of Homeland or DHS Science and Technology or S&T, as well as Defense Advanced Research Projects Agency or DARPA, CipherTrace is actually backed by the leading Silicon Valley venture capital investors. It has been created in order to develop blockchain and crypto tracing, as well as security capabilities.

Some leading exchanges, investigators, banks, regulators, as well as digital asset businesses utilize CipherTrace to trace the flows of their transactions and comply with the regulatory anti-money laundering requirements, to promote trust in the crypto economy.

CipherTrace’s tool will enable MFSA to identify frauds and prevent money laundering

The Supervisory Technology Tool of CipherTrace is going to allow MFSA to identify frauds better, as well as block funding of terrorism and money laundering. The tool is also going to continuously rate the risks of crypto businesses to protect consumers, business partners and investors.

It tracks the risk exposure of vital asset businesses which include crypto exchanges, Initial Coin Offering or ICOs, and collective investment schemes, to gauge, and also measure the potential exposure.

The crypto anti-money laundering of CipherTrace, crypto forensics, as well as blockchain threat intelligence solutions are going to help MFSA to manage the risks which are connected with the virtual asset businesses.

The machine learning algorithms of ChiperTrace calculates the risk levels for the addresses, exchanges, wallets, or some other entities which are based on known criminal addresses, associations, or services for money laundering.

The Republic of Malta supports crypto and blockchain businesses

The Republic of Malta is welcoming crypto and blockchain businesses because the small Mediterranean island nation is transforming itself into the fintech hub and crypto-friendly “Blockchain island.”

Malta actively builds a supportive regulatory, as well as technical infrastructure for the Distributed Ledger Technology or DLTs, ICOs, and also virtual currencies, and it actually has the purpose of becoming the first state regulated by blockchain.

Last year in July, the Maltese parliament has passed three bills to set a regulatory framework, as well as drive innovation in the blockchain-like technologies. The government also hopes that such laws are going to attract foreign fintech companies in order to establish themselves in the country.


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