The Malta Financial Services Authority (MFSA) has appointed U.S. cybersecurity company Ciphertrace to help with compliance monitoring of crypto assets. Ciphertrace will be expected to keep track of transactions that pass through local crypto exchanges and digital wallets including ICOs, screening for potential money laundering and terrorism financing violations.
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Detecting Illicit Financial Flows
The MFSA is currently sifting through applications from 29 cryptocurrency businesses that are seeking approval to operate as what are known as virtual financial agents (VFAs), the Times of Malta reported on March 11. Once the VFAs have been licensed, understood to be by the end of the month, businesses are expected to submit further applications to operate cryptocurrency exchanges, wallets and initial coin offerings.
Ciphertrace will be required to track every asset that passes through the virtual financial agents, even when reasonable caution has been taken by the VFAs to prevent cases of illicit financial flows by individuals and businesses.
“Being strongly aware of the…
