EU Warns Malta of the Dangers of Ignoring Money Laundering

[Slow death]

this pressure from the EU and many countries on money laundering becomes a big joke, I say it becomes a big joke because many politicians are money laundering mentors because when they steal government money they use their diplomatic passports and they deposit the money in another country, as if it were money from some of their country's company (fake company) and keep talking about that bitcoin is dangerous because of money laundering or the financing of terrorism becomes a big joke

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[wattcrypto]

I feel that money laundering can easily be tracked more so on a public blockchain than say our fiat system though because we don't even know where the money is and goes.  Having technology like ciphertrace's is necessary in my  opinion

[gentlemand]

I don't think it'll drive away investors, but it could definitely change the nature of current trading practices. Some are speculating that these FATF guidelines will drive investors away from exchanges and back to peer-to-peer trading:

It'll have to be true P2P, not quasi custodial like Localbitcoins which is getting ever more uptight. I just don't see that many people wanting to do it in comparison to sticking your card into nice, friendly-looking Coinbase.

Things would have to get pretty desperate for the average dunderhead to consider it. All the same those look like some onerous requirements so perhaps in some places there won't be an alternative as exchanges can't afford to comply.

[figmentofmyass]

It'll have to be true P2P, not quasi custodial like Localbitcoins which is getting ever more uptight. I just don't see that many people wanting to do it in comparison to sticking your card into nice, friendly-looking Coinbase.

we've established that most folks are okay with KYC. but where do people draw the line?

what the FATF is talking about goes far beyond just KYC. they're talking about global coordination among exchanges to report all transactions of $1000+, including requiring disclosure of information about recipients. presumably coinbase, bitstamp and their ilk will become even quicker to terminate accounts if they don't like what they see.

bisq to the rescue? plz?

[stadus]

No exception, soon there will be a universal regulation on crypto.
Crypto seem to be attracting more money and regulators are afraid of the money launderer as they cannot control it if such country is lax in regulation about money laundering. It's just a warning, nothing is serious here but like I said, sooner, they will be fully compliant just like the regulation in compliant countries.

[Naida_BR]

https://bitcoinmagazine.com/articles/eu-warns-malta-of-the-dangers-of-neglecting-money-laundering

Malta aka Blockchain Island has become the mecca crypto due to its favorable crypto laws. With the flood of crypto money to the island it's been taking the right steps to work on compliance such as partnering with crypto security firm CipherTrace to identify and prevent crypto crime.

Steps like this seems to help make the government quite happy in how to handle crypto and manage risk in countries. Would you agree? What else do we need to implement or be sure to watch out for?

Money laundering happens also in countries that they haven't adopted the blockchain technology.
They just found a way to regulate a country that seems to be thriving economically without giving them a crap about the decisions of the EU.

[uray]

Malta aka Blockchain Island has become the mecca crypto due to its favorable crypto laws. With the flood of crypto money to the island it's been taking the right steps to work on compliance such as partnering with crypto security firm CipherTrace to identify and prevent crypto crime.

Steps like this seems to help make the government quite happy in how to handle crypto and manage risk in countries. Would you agree? What else do we need to implement or be sure to watch out for?

Everyone knows that Malta is a free heaven for every companies and if they do not heed the warning then there will be strict regulations against them and i am sure they will not make things worse and comply to the demands of EU and US, i personally do not like these kind of restrictions but the way in which is market is going with all the scams, we need to have some regulations to get rid of the scammers from the market and since every transaction in bitcoin can be tracked it is not a big task if they want to catch all the scammers.

[jjbanks994]

We know that money laundering is going to happen, people will always find a way so it's a matter of how will we regulate this? I think we can look to Malta as a leading country and see that hiring a cyber security firm like ciphertrace is a great first step on crypto's side.

[marcbitcoins]

Although money laundering is really dangerous but i think if a certain country knows how to deal with this without sacrificing the benefits from crypto currencies then i believe this so called money laundering will not be a problem. There are lot of regulations that strictly implemented today but still the bad guys can find ways on how to deal with them, so hopefully EU will not act of their own as Malta is surely doing what is best for their economy.

[coolcoinz]

Perhaps the reason why EU is pressing Malta so hard on setting up regulations is because most crypto businesses are taking refuge on the said island and do their business in there instead of the big guys in the Union. The question is up until when would they be able to be so 'crypto-friendly'? For sure, there will come a time that the little island would be a hotspot for money laundering and other stuff if left unchecked, and that's why the EU is stepping in. Of course, due to favorable crypto conditions, Malta becomes the 'Swiss bank account' of legitimate and illegitimate crypto users alike, and that's no good in the long run.

AML is not the only reason why businesses are running to Malta. I remember an article about a Polish exchange that had to move there because of some unfavourable conditions in the country. Long story short, they banks there were cutting ties with crypto businesses and the government demanded them to hand over all user information for the purpose of taxation, even people who didn't trade for fiat but only exchanged cryptocurrencies.

On one hand money laundering is bad, but on the other handing out user information to every agency that asks for it, even when they aren't investigating that user, is a bit too much. Show me the man and I will show you the crime.

[joseafonso123az]

The warning of EU is fair, because the man reason why countries arent adopting this is the money laundering issue ( and also all the freedom that indviduals get from btc). Malta has to see how these crypto companies operate, and if there are issues with their finances, Malta should require and see what is happening with that business!

[Cloverfield]

Why would Malta care if their economy is increasing and the EU can only warn them for something that is still so vague in the rest of the EU. Regulating or completely forbid a thing like Bitcoin is only possible when you kick in doors, regulate the whole internet and arrest everyone who owns/trades/accepts/whatever does something with BTC. Just accept the fact it’s here to stay and be like Malta. Pro-active and supports the future

[countryfree]

Frankly, they should leave the EU. The biggest problem in Malta right now is overdevelopment.

It's a small island absolutely crowded with tourists. It would be a much nicer place if it had less tourists, and a few more money-launderers to compensate.

[Schirer]

This warning could have for sure been sparked because Malta is seen to take away business from the rest of the countries in EU, when it comes to regulated/licensed bitcoin businesses, while the warning about AML may only be what's happening on the surface.

Malta is not taking away businesses from other EU countries simply because those businesses wont be in other countries because other countries have much stricter regulation. It is a miracle that EU has not imposed some stricter rules on Malta . There are a lot of big crypto exchanges registered there Binance,Okex, Etoro and most likely more.

Eu is just concerned the huge amounts of money going thru there unregulated.

[audaciousbeing]

https://bitcoinmagazine.com/articles/eu-warns-malta-of-the-dangers-of-neglecting-money-laundering

Malta aka Blockchain Island has become the mecca crypto due to its favorable crypto laws. With the flood of crypto money to the island it's been taking the right steps to work on compliance such as partnering with crypto security firm CipherTrace to identify and prevent crypto crime.

Steps like this seems to help make the government quite happy in how to handle crypto and manage risk in countries. Would you agree? What else do we need to implement or be sure to watch out for?

Its important to further strengthen the law of the land to guide against money laundering and not because of the good guys but to those who will see the law as an avenue to commit atrocities at the detriment of those who wants to legitimately handle their activities. The regulation and compliance is also necessary to act as a catalyst against any one who might even be thinking of doing anything illegal thinking the law is open or silent about activities such as that in that locality.

[buwaytress]

This warning could have for sure been sparked because Malta is seen to take away business from the rest of the countries in EU, when it comes to regulated/licensed bitcoin businesses, while the warning about AML may only be what's happening on the surface.

Malta is not taking away businesses from other EU countries simply because those businesses wont be in other countries because other countries have much stricter regulation. It is a miracle that EU has not imposed some stricter rules on Malta . There are a lot of big crypto exchanges registered there Binance,Okex, Etoro and most likely more.

Eu is just concerned the huge amounts of money going thru there unregulated.

Actually, it may have been a valid cause for concern, not necessarily restricted to Malta but to all these tiny "blockchain jurisdictions" formerly known as tax havens for complicated tax structures.

It's not really so much of a secret that the world stood by and allowed all the money to flow under their eyes and under the radar for so long. Now that they cracked down on it, it's only fair they extend that restriction to all forms of new money. For them bitcoin/crypto's just a new vehicle. They see it exactly as a new financial tech, and when you have clients now

[BitHodler]

The regulation and compliance is also necessary to act as a catalyst against any one who might even be thinking of doing anything illegal thinking the law is open or silent about activities such as that in that locality.

I'm not necessarily against regulations and to some degree tighter policies, but the downside here is that these regulations are being used as weapon against people to exercise control over whatever it is that they are doing.

The narrative they are pushing that they are trying to combat illicit activities, is only used as smoke screen, because let's be honest, the more regulations there are, the more professional the illicit activities become.

I have never seen reports indicate that there has been a decline in the amounts concerned with these illicit activities, which just shows that it doesn't work. It may stop some small fishes, but the sharks are still not impressed.

[malevolent]

I'd be less inclined to trust a company that moved to Malta than one that stayed put.

Many businesses don't even have a choice, if they want to continue operating they have to relocate out of their own countries and move to friendlier jurisdictions where at least they'll be able to keep a bank account (you need to if you run a legit business that pays taxes or if you want to accept fiat currencies from your customers). The alternative is spending loads of money to provide a subpar quality of service.

[stompix]

Malta would be monumentally stupid to ignore this, and this is why places like Binance flocking there may wind up getting screwed. I'd be less inclined to trust a company that moved to Malta than one that stayed put.

Sounds like Binance may soon be on the run again. Hong Kong, Japan, Malta... where to next? The British Virgin Islands?

Hhahaha
I was telling people for months that they change countries faster than some change underwear.

Once they have to flee Malta they will run out of serious options, only real off-shore countries will be a solution as everyone will keep an eye on them. And even if they will manage to set office in one their reputation will be tarnished.

Frankly, they should leave the EU. The biggest problem in Malta right now is overdevelopment.
It's a small island absolutely crowded with tourists. It would be a much nicer place if it had less tourists, and a few more money-launderers to compensate.

And they should go back to their traditional economy that for sure will sustain all the loses from tourism.
What was that? Crusades? 

Why would Malta care if their economy is increasing

And do you have any proof that Biance is contributing more than 0.01% on that increase?
Have they paid 1$ in taxes till now?

[Schirer]

Frankly, they should leave the EU. The biggest problem in Malta right now is overdevelopment.

It's a small island absolutely crowded with tourists. It would be a much nicer place if it had less tourists, and a few more money-launderers to compensate.

Lets blame everything on Eu, lol.

By leaving EU , they would lose a lot of financial perks, that includes SEPA payments.
I doubt that they would like to lose a big pie of their income in their 2 top niches.

 When they will be pushed to harsher regulation in finances, they will want to hold on their tourism.