A lot is reported in the crypto and traditional press about Malta and its open position towards business innovating with both cryptocurrency and blockchain tech. Nevertheless, it appears that lots of start-ups are having a hard time to protect banking services with the island’s financial institutions.
According to a write-up in the Times of Malta, banks have actually been more responsive to blockchain business than those developing companies around digital assets themselves. Nevertheless, their lack of experience with the technologies typically intimates they fail to make a contrast between the two.
Even Banks in Malta Remain Wary of Crypto
NewsBTC has reported many times about the favourable blockchain and crypto business conditions being cultivated by the federal government of Malta. In reality, the country’s embrace of the technology is most likely behind the excellent financial growth forecast for the island by the EU previously this year.
However, all is not perfect for the blockchain and crypto start-ups setting up a store or moving operations to Malta. Reports at The Times of Malta claim to have actually talked to many sources, business providers, legal companies, and business finance companies, who informed the publication that banks were declining services to both crypto and blockchain start-ups on the grounds that it was too risky for them. For customer privacy reasons, these sources’ anonymity was respected.
The edition reports that banks were neglecting to distinguish between blockchain start-ups and those centring on digital assets themselves. Parliamentary Secretary for Financial Services Silvio Schembri stated:
“The general understanding is that when it comes to crypto operators, banks are waiting for operators to obtain an MFSA (Malta Financial Services Authority) licence before opening their doors – which is understandable.”
Nevertheless, Schembri did add that there need to be more effort made to comprehend the market accurately which he would be personally meeting banking executives and shareholders to supply the needed support:
“One should make a clear distinction between blockchain operators and crypto operators.”
Banking Difficulties Haven’t Taken the Shine off Malta
Despite reports of crypto start-ups struggling to secure banking services, Malta appears to still be showing a popular destination to do business for the space’s young companies. The MFSA apparently received 28 applications from start-ups coveting to be certified as a Virtual Financial Asset Agent since November.
However, such applications are not dealt with rapidly connected with the viewed risks equated with the industry. A representative for the MFSA specified that the precise timeline for approving a licence under the Virtual Financial Asset Act depended on how well each individual firm pleased anti-money laundering and counter-terrorism checks. They added:
“As Malta’s first line of the defence, the MFSA’s assessment with regard to VFA Agent applications is thorough and includes inter alia a rigorous competence assessment as well as checks on the applicants’ proposed governance and business model.”
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