Malta Financial Services Authority partners with CipherTrace for crypto monitoring

Malta Financial Services Authority (MFSA) has formed a partnership with CipherTrace to regulate and monitor virtual asset businesses and cryptocurrencies.

The CipherTrace Compliance Monitoring solution continuously rates the risks of crypto businesses in order to protect consumers, investors and business partners. Its supervisory technology is comprised of cryptocurrency anti-money laundering, crypto forensics and blockchain threat intelligence solutions.

MFSA will leverage the RegTech platform to lower fraud and detect transactions with illegal sources of funds. The oversight tools will automate regulatory processes and audit risk management of virtual asset businesses which are licensed in Malta, the regulator claimed.

In addition to this, the technology will empower the regulator to monitor crypto exchanges, collective investment schemes and ICOs pre and post authentication stages, CipherTrace stated.

CipherTrace CEO Dave Jevans said, “Cryptocurrency businesses often have difficulty establishing trust and maintaining banking relationships because of their perceived risk. Banks and other financial institutions use the CipherTrace Compliance Monitoring solution to help decide which virtual asset businesses to trust as corporate customers. These insights help banks avoid de-risking by turning away valuable customers in this lucrative and fast-growing sector.”

The company has built crypto intelligence, AML, blockchain analytics and forensics, and compliance solutions which are implemented by governments, regulators, law enforcers and auditors to impose AML regulations and combat fraud.

Its blockchain analytics tool leverages machine learning technology to de-anonymise transactions flow by gathering millions of data points each week and tracing legitimate entities and illegal players.

Earlier in the year, CipherTrace bagged $15m in a venture funding round which was led by Aspect Ventures. Funds from the round are earmarked for international expansion and the further development of its product.

Copyright © 2019 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.