• Malta is a tax haven for crypto enthusiasts, according to the FATF.
• Several countries have come together to regularize virtual currencies and create their CBDCs.
FATF opened an investigation into the cryptocurrency regularization in Malta. The Malta region has spent over 60,000 euros in recent months with very favorable regulatory policies.
The country has become a paradise for fans of these virtual currencies. FATF clarifies that anti-money laundering policies in the country are problematic due to their weakness. The central authority insists that the country should be on the list of tax havens because they don’t fight enough against financial crimes.
Malta has very few restrictions on cryptocurrencies
Officials from the Financial Action Task Force point to Malta as a possible hotbed for crypto transactions. However, Maltese agents have defended themselves against such accusations by insisting they comply with regulatory rules. They even clear that their monetary amount is 2% of the annual transactions in cryptocurrencies.
Some news sources suggest that the FATF announcement comes after officials saw weaknesses in Malta’s regulations. A key point in the discussion is that the Financial Action Task Force sees the lack of oversight in decentralized trade.
These light measures Malta has taken against cryptocurrencies has made the country popular. Malta is seen as the Blockchain island. Some decentralized currency platforms like OKEx and Binance have established themselves in the country.
Malta against FATF policies
The FATF and Malta meeting shows that the authorities are regularizing cryptocurrencies. For many years, agents in various countries, including the United States, have fought to ban the crypto market.
Although they have not had successful results in their regulatory framework for more than a decade, all this may change. However, the authorities have not confirmed whether they will develop the regulatory plan this year or next.
China’s actions against crypto have influenced its value, especially BTC, which lost 60% of its price. China is on course to create its own CBDC, but the country is banning bitcoin mining before that. The authorities want to ban the existing crypto market because it is decentralized.
European countries are looking to other countries developing their CBDCs while the European Central Bank creates the digital euro. The SEC regulators in the United States create projects to check crypto transactions thoroughly. All these measures obviously affect cryptocurrencies.