The European Union has told Malta it needs to improve the resources it has to fight potential financial crime as a result of cryptocurrency popularity, local daily news outlet Malta Today reported on June 5.
In a letter to member states advising how to spend EU funds, the European Commission flagged Malta's burgeoning cryptocurrency sector as a potential weak link in the fight against financial crime.
"The Commission, in its recommendations to member states for the use of EU funds, said that the size of Malta's financial and gaming sector, and the efforts to attract crypto-currency operators required an effective anti-money laundering enforcement," Malta Today summarized.
Possible conflicts of interest in government should be addressed regarding corruption, while tax obligations should also be reassessed.
"Furthermore, the police's Economic Crimes Unit is currently understaffed," the Commission added.
"In this context, it is important to couple a strengthened legislative framework with timely and thorough implementation."
Malta continues on its path to create a haven for cryptocurrency and blockchain businesses.
As Cointelegraph reported, some of the industry's biggest names, including exchange Binance, have made the country their home under the government's highly-publicized "Blockchain Island" plans.
At the same time, authorities are getting to grips with controlling the sector, creating both vetting structures and releasing information for consumers, such as the risks associated with crypto asset investment.
Silvio Schembri, Junior Minister for Financial Services, Digital Economy and Innovation within the Office of the Prime Minister of Malta, wrote a dedicated article for Cointelegraph last month in which he discussed the current state of the "Blockchain Island" project.
EU: Malta Needs to Improve Readiness to Respond to Cryptocurrency Crime
Published on Jun 5, 2019
by Cointele | Published on Coinage
Coinage
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.