chepicap.com
It has been reported by the Times of Malta that US crypto compliance company CipherTrace has been hired by the Malta Financial Services Authority (MFSA) to monitor the compliance of all crypto related companies operating in the nation.
According to CipherTrace CEO Joseph Cuschieri:
"Ciphertrace Compliance Monitoring will provide the MFSA with powerful oversight tools to automate regulatory processes and audit the risk management of virtual asset businesses licensed in Malta."
In essence, CipherTrace will be monitoring the transactions that occur on any government registered cryto site and will be looking for suspicious activity that could be related to money laundering or funding terrorism. It isn't exactly clear how CipherTrace aims to do this but it is clear that the crypto space does need some form of regulation.
CipherTrace was originally founded in the US in 2015 and funded by the US Department of Homeland Security Science and Technology. Its general purpose is to analyze risk exposure for crypto based companies, such as exchanges or Initial Coin Offerings (ICOs).
Hopefully CipherTrace can help bring some needed regulation to Malta. If implemented well, this could be another step towards Malta becoming the "blockchain island" it seems so eager to be.
Read more: Companies reportedly struggling to get bank accounts on "blockchain island"