Ciphertrace To Start Monitoring Crypto Transactions In Malta
According to a recent report, a cybersecurity company in the U.S called Ciphertrace has been appointed by the Malta Financial Services Authority (MFSA) to monitor the compliance of crypto assets by monitoring transactions which are carried out by local crypto exchanges and digital wallets including ICOs, and investigating any form of money laundering and terrorism financing violations.
Malta Financial Services Authority (MFSA)
Several virtual currency startups are waiting to be approved by the Malta Financial Services Authority (MFSA) in order to operate as Virtual Financial Agents (VFAs) and it has been revealed that they will get the approval at the end of the month. When granting the licenses, they are expected to tender further applications in order to be able to function as digital currency exchanges, wallets
It expected of Ciphertrace to monitor all assets which pass through the (VFAs) even when they have taken several precautions not to get caught. This is in order to avoid cases of illegal money transactions by individuals and businesses.
The Chief Executive Officer of MFSA said:
“Being strongly aware of the money laundering and financing of terrorism risks associated with entities operating in this sphere, the decision has been taken to engage the services of Ciphertrace in order to reduce fraud and detect transactions with illegal sources of funds,”
“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.” He added.
Ciphertrace is a blockchain security company which provides virtual currency anti-money laundering, digital currency forensics, and blockchain threat intelligence solutions. It is established in America by Silicon Valley entrepreneurs in 2015.
The company makes use of machine learning to trace transactions thereby helping regulatory bodies to access and monitor the reliability of crypto asset businesses. The company keeps track of risk involved in crypto asset businesses which includes virtual currency exchanges, collective investment schemes, and ICOs to measure potential exposure.