Malta Partners With Ciphertrace To Manage Digital Financial Crimes

Malta Partners With Ciphertrace To Manage Digital Financial Crimes

Malta will be partnering with CipherTrace in the management of financial crimes within its digital assets industry.

Malta Partners With Ciphertrace

The MFSA (Malta Financial Services Authority) will be collaborating with CipherTrace Compliance Monitoring in its efforts to improve the management of operational risks encountered with digital assets. The authority will be utilizing the CipherTrace tool which has been developed to regularly monitor and rate the risks involved in Crypto businesses as a way of protecting the consumers, investors and partners in the businesses. The MFSA is the only financial regulatory body in Malta and oversees not only the securities industry but the financial services industry as well.

The country has been seen as a jurisdiction with a favourable environment for Blockchain technology. With Malta being a part of the European Union, it is easy for a firm operating in this jurisdiction to expand operations to the rest of the EU. Malta has been a trendsetter in the creation of an enabling environment for innovation within the digital assets industry. The country has even proclaimed itself as a Blockchain Island.

Through the CipherTrace tool the MFSA will be able to manage various risks more effectively including money laundering, promoting better KYC protocols, as well as facilitate better Blockchain threat intelligence and Crypto forensics solutions.

The CipherTrace Compliance Monitoring Solution

Joseph Cuschieri, the CEO of the MFSA, stated that the agency was well aware of the risks involved in money laundering and terrorism financing. Cuschieri said that the decision to partner with CipherTrace was made so that the agency could not only reduce the instances of illicit activities but also detect transactions coming from suspicious sources. He added that CipherTrace Compliance Monitoring will facilitate the agency with powerful oversight tools that will promote the automation of regulatory processes and the auditing of risk management in the virtual asset businesses licensed in the country.


It is said that the CipherTrace Compliance Monitoring utilizes machine learning in the de-anonymizing of transactions thereby enabling regulators to monitor and evaluate how trustworthy the digital assets businesses are. This solution enables the tracking of risk exposure in relation to Crypto exchanges, ICOs (initial coin offerings) and collective investment schemes. Dave Jevans, CipherTrace’s chief executive said that the solution will also enable the authority to monitor the activities of the businesses before and after their authorization.

Jevans added that Crypto based businesses usually experience problems with establishing trust with its investors and cementing banking relations because of the risks perceived to come with the sector. He said that banks and other financial institutions within the country utilize the CipherTrace Compliance Monitoring solution in deciding on which businesses could be trusted as corporate customers. Through this solution banks are able to avoid de-risking through the rejection of businesses which could be valuable customers in the sector.

A Solution For Risks Involved With Crypto Trading

CipherTrace uses this solution to calculate the level of risk involved for exchanges, wallets and other parties by looking into criminal addresses, related associations and money laundering services.

Many jurisdictions reviewing Crypto looking into ways of dealing with the threats associated with Crypto trading.

March 14, 2019

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Samantha Mitchell

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