Ciphertrace, a US cybersecurity firm has been appointed by the Malta Financial Services Authority in a new role. The main work of Ciphertrace would be to assist with compliance monitoring of the cryptocurrency assets.
The main work of Ciphertrace would be to assist with compliance monitoring of the cryptocurrency assets. It would also be charged with the role of monitoring the digital wallets, with the Initial Coin Offerings included. Other roles would also include monitoring the terrorism financial violations and money laundering instances.
Detecting The Illegal Financial Flows
The Malta Financial Services Authority has been in the market for a long time. For a long time, it has been sifting from close to cryptocurrency trading operations. These are the operations that are looking for approval to operate as the VFAs – the Virtual Financial Agents.
The regulations have been scheduled to complete by the end of the month. Once that has been done, businesses are expected to submit further applications to operate the crypto exchanges, ICOs, and wallets. Ciphertrace will have to track down each asset that goes through the virtual financial agents. This would be the case even when reasonable caution has been taken by the VFAs to curb instances of illegal financial flows. The practice is most common by businesses as well as other individuals. This announcement was made by the MFSA’s Chief Executive Officer, Joseph Cuschieri.
Building A Strong Relationship With Banks
Ciphertrace is one of the leading American blockchain security firms. It was founded in 2015 by the entrepreneurs from Silicon Valley. It has a supremacy technology tool that is known as Suptech. Through this tool, the company provides the crypto anti-money laundering services to the traders.
Other services also include the blockchain and forensic threat intelligence services. It also de-analyzes transactions through the use of machine learning. This assists the regulators to monitor and evaluate the trustworthiness of the crypto asset businesses. The system assists in tracking the risk exposure of all the crypto businesses. They would include the collective investment schemes, the crypto exchanges, the ICOs as well as the collective investment schemes.
Ciphertrace Applications To The Financial Market
The new monitoring tool by Ciphertrace is already in use by a section of banks and other financial organizations. It assists in deciding on which virtual asset to be used by corporate clients. These insights assist the banks to avoid derisking in all manners possible it is done by turning away the valuable clients in this fast-growing and lucrative business sector. That is according to the details given by the group’s CEO, Joseph Cushieri.
Several local banks haven’t been fast in opening the crypto business accounts. They tend to argue that operations of that sort are outside their risk preferences. This has prompted the government to step in and hold talks with the banks. The talks are meant to assist the banks to have a better understanding of the whole market.