To assist and help with compliance checking of crypto assets, the Malta Financial Services Authority (MFSA) has appointed U.S. cybersecurity company Ciphertrace.


Nvestweekly reported on March 11, that the MFSA is presently filtering through applications from 29 crypto-businesses looking for authorization to work as ‘virtual financial agents’ (VFAs). The licensing is anticipated to complete before the month end. The criteria are for the organizations to submit further applications to conduct business as cryptocurrency exchanges, offer wallets and initial coin offerings.


Ciphertrace will rely upon to monitor transactions that go through local crypto exchanges and digital wallets. This includes ICOs, screening for potential money laundering, and terrorism financing violations. The security company will require to follow each asset that goes through the virtual financial agents. Even though the VFAs have already took measures to anticipate and inhibit any illegal financial action by individuals and businesses.


Established by Silicon Valley entrepreneurs in 2015, Ciphertrace is an American blockchain security organization. It offers cryptocurrency anti-money laundering, cryptocurrency forensics, and blockchain threat intelligence solutions through its supervisory technology tool (Suptech).


“Being strongly aware of the money laundering and financing of terrorism risks associated with entities operating in this sphere, the decision is to take to engage the services of Ciphertrace in order to reduce fraud and detect transactions with illegal sources of funds,”

-Joseph Cuschieri, CEO of MFSA, was quoted as saying.


Compliance monitoring performed by Ciphertrace will provide the MFSA with ground-breaking oversight tools, helping them to automate regulatory procedures and audit the risk management of virtual asset businesses licensed in Malta.


Following are the advantages of using Ciphertrace:


  • Uses machine learning to de-anonymize transactions
  • Helping regulators to assess
  • Monitor the reliability of crypto resource organizations.


The organization utilizes AI to de-anonymize transactive exchanges, helping controllers to assess and screen the reliability of crypto resource organizations. This arrangement tracks the risk exposure of virtual asset organizations including digital currency trade exchange companies, collective investment schemes, and ICOs to gauge potential exposure.


“Suptech will allow the MFSA to monitor the activities of crypto businesses both pre- as well as post-authorization stage,”

-said Dave Jevans, CEO of Ciphertrace.


Municipal banks have been hesitant to open digital currency business accounts in the nation. It stated that it would be too risky for them to do so. The government has therefore now decided to take matters upon itself, to gauge a superior comprehension.

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