The Times of Malta reported on March 5 that Malta Digital Exchange (MDX) is growing with the Malta Stock Exchange (MSE) in the contemplation of the launch of its digital exchange division.
MDX is in the process of obtaining a securities license to promote a multilateral trading platform, which will present a secondary market for the business of digital assets. Founder and Executive Chairman of MDX, Rick Kilink said that “being transferred to the Maltese Stock Exchange means that we are physically positioned to be in the heart of the next wave of institutional financial innovation.”
This step came in the wake of the International Monetary Fund’s (IMF) statement that the Malta Financial Services Authority (MFSA) tackled the crucial gap between the monitoring of anti-money laundering (AML) and the beginning of this month with terrorism financing (CFT) .
In its Financial System Stability Assessment Report, IMF recommends appointing more resources to monitor blockchain and cryptocurrence service providers. It also requires the need for increased screening procedures for new technologies, including beneficiary information and monitoring risk-sensitive accounts, digital assets and e-gaming, and IIP related funds.
Even this month, many law firms and financial companies allegedly told Times of Malta that the banks are declining applications to open their accounts. Sources reportedly said that banks did not differentiate between digital currency and blockchain, although they were not always associated.
In February, MFSA released consulting on new technologies related to cyber security. Guidance targets professional funds that invest in Virtual Financial Assets Act (VFAA) for virtual currencies, issuers, as well as agents and service providers, with the latter, act as intermediaries between clients and authorizations. .