Malta’s quest to become the go-to region for crypto startups has not gone unnoticed by international authorities, with the emerging industry significantly contributing to the country’s burgeoning economy.
However, such prominence does not come at no cost according to new recommendations that Malta received from the European Union (EU) regarding areas that the country can beef up efforts to track financial crimes.
The recommendations, according to the local news agency, MaltaToday, is country-specific and seeks to offer suggestions regarding how a country should spend its EU Fund.
Regarding Malta’s growing services economy especially in cryptocurrency and gaming, the report cites the EU as telling Malta to introduce stronger anti-money laundering enforcement measure
The EU hailed Malta for increasing “human and budgetary resources” for the Financial Intelligence Analysis Unit and also enhancing procedures and processes for the Financial crime watchdog.
However, the EU warned concerning the growth that “governance shortcomings, particularly in the fight against corruption, may also adversely affect the business environment and weigh negatively on investment.”
A specific area, then, that the EU asked Malta to work on includes the understaffed Economic Crimes Unit of the country’s Police.
Linking that deficiency with Malta’s robust legislative effort for emerging technologies, the EU reminded the country’s leaders that “it is important to couple a strengthened legislative framework with timely and thorough implementation.”
Meanwhile, as Stmarket.co reported in the past, Malta has not left its citizens uneducated regarding the strategies used by fraudulent crypto projects to steal from investors. In April, the country released updated information on how to identify such shady investment opportunities.
On the blockchain front, Malta back in December signed a memorandum of understanding with seven EU countries to implement the cutting-edge technology in their respective economies.