Malta’s Financial Crimes Risk Managed By Crypto Security Firm
Malta is known for its strong presence in the crypto space. Apparently, it has decided to turn into a crypto sleuthing company called CipherTrace in order to acquire technical assistance. The idea is to help address the risk of financial crimes in its licensed crypto industry.
Teaming Up With CipherTrace
The Malta Financial Services Authority (MFSA) made an announcement recently, suggesting that it would soon integrate CipherTrace’s very own Compliance Monitoring tools. By doing so, it believes it can provide much-needed support in protecting all of its consumers, investors, and business partners.
The tool from the startup is capable of using blockchain analytics and forensics, allowing it to determine any suspicious addresses and/or wallets, an explanation provided by the company on its official website. The firm adds that the product has the ability to profile crypto exchanges, coin mixers, ATM, and even money laundering systems. More importantly, it can detect infamous criminal addresses in order to score transactions and assess the associated risk level.
Basically, the tool uses both machine learning and analytics. By doing so, it can help estimate transactional risk, one that is largely based on the activity pertaining to the identified wallets and/or addresses. The MFSA added that the system also has the ability to de-anonymize blockchain addresses, enabling regulators to both evaluate and monitor the credibility of all virtual asset businesses.
CipherTrace’s Tools And Capabilities
According to Joseph Cuschieri, the CEO of MFSA, there is importance in being strongly aware of the financing of terrorism and money laundering. The same thing can be said for the different risks associated with businesses and/or organizations operating in the space. The decision, in particular, is meant to engage the services of the startup to lessen the frequency of fraud and detect transactions deemed with sources of funds that are illegal.
CipherTracer, on the other hand, claimed that the integration would essentially offer risk ratings directly to Malta’s cryptocurrency operations. And by doing so, they will be successful in evaluating these operations’ credibility. Even more so, the integration will be put in place in order to continuously monitor all of them for compliance.
The MFSA is tasked to track the risks pertaining to crypto businesses, including crypto exchanges, simply due to their “perceived risk.” This is what Dave Jevans, the CEO of CipherTrace, explained. The startup’s tools are capable of helping financial institutions decide which cryptocurrency businesses can be trusted, as well as those “valuable customers” that should be avoided.