Crypto.com got approved to offer Bank transfers in Malta as the platform obtained an Electronic Money Institution license from the Maltese regulators so let’s read more in our latest cryptocurrency news.
Malta issued its first EMI license to a crypto-related business and now Crypto.com got approved to offer payment cards and bank transfer services to the residents on the island. Payments platform crypto.com is now the first crypto firm to acquire Malta’s Electronic Money Institution license allowing it to issue payment cards and offer customers direct bank transfers. The license is in addition to the Virtual Financial Assets (VFA) license Malta Financial Services Authority back in May. Kris Marszalek who is the CEO and co-founder said:
“Being the first global cryptocurrency platform to receive an EMI License from the MFSA is a major milestone for the industry as a whole.”
The payments platform and exchange is based in Hong Kong and Marszalek added that the company is still in the process of obtaining licenses in each country that it operates. Acquiring appropriate licenses is key for crypto businesses to operate safely as in the past few months, regulators beefed up the scrutiny for exchanges that operate without the correct license. Binance as the crypto exchange by trading volume received a blow from regulators around the world. The exchange had hopes of attaining Malta’s EMI license but in February 2020, the MFSA took pain to show the exchange was not authorized to operate out of Malta despite the public nature of its move to the crypto-friendly island back in 2018.
Malta’s crypto regulations were billed as the most innovative in the world when they were announced in 2018 but despite the friendly image and “Blockchain Island hype” the application process was quite expensive and regulations were way too stringent. Approximately 70% of the startups that completed the first stage of the MFSA application process failed to make the grade after the regulators beefed up their policies in response to money-laundering concerns from the EU. Despite the extra measures, evaluators from the FATF in June put Malta on the grey list of countries that are not doing much to prevent financial crimes.