Concerns Over Money Laundering Rises as $60bln Worth Crypto Flowed via Malta

Malta was largely unknown in the cryptocurrency market prior to 2017. Since proclaiming its intention to become a blockchain island, the nation has been a paradise for cryptocurrency companies. Ever since, more than $60 billion in cryptocurrency has flowed through the state, sparking concerns among worldwide officials.

They gathered this week to voice their worries, but Malta quickly reassured them that everything is OK. The Financial Action Task Force assessors gathered in Paris last week, as per the Times of Malta, to evaluate Malta’s growth as a crypto center.

According to reports, the FATF was debating whether Malta should be included to a list of nations that aren’t taking adequate steps to combat serious financial crime. Malta, according to the FATF, was eager to attract hundreds of crypto companies before enacting the required legislation to regulate the sector.

It thinks that this makes Malta a “difficult” country, particularly in today’s environment, when criminals are gradually shifting to digital money laundering methods, one of which is cryptocurrency. Nevertheless, the European country defended itself by claiming that the crypto business is now well-regulated. Furthermore, they claimed that the $60 billion represented only 2% of worldwide crypto transactions.

While the number of financial crime prosecutions in Malta is increasing, the FATF has highlighted the concern that not enough of them are representing culprits of serious crimes. But it wasn’t all bad news for Malta.

There were a lot of reviewers on its side, as per the publication. This group agreed that the nation has made significant progress in overseeing cryptocurrency. Binance, the world’s largest crypto exchange, was among the firms that made news by reportedly relocating to Malta. According to reports, it opened offices in 2018.

Nevertheless, after numerous clients in the Southern European island country complained to have lost money as a result of the exchange, the two’s fascination came to an abrupt end a few months later. Binance has been refused a license to sell services or operate from Malta by Maltese officials.

Changpeng Zhao later claimed that the firm was never headquartered in Malta. Binance has been relocating its headquarters for some time. After the Chinese government tightened down on cryptocurrency, the exchange had to shift. It picked Japan, but it was not supported there either, according to accounts at the time. Its headquarters are currently in the Cayman Islands.