Eternity Law International News Directive № 5 in Malta

Directive № 5 in Malta

Published:
April 1, 2020

In 2018, 2 important events took place for the world of virtual currency and digital wallets. One of them is Directive № 5 in Malta. The Government of the island of Malta adopted 3 legal acts regulating the sandbox of the blockchain.

And in June, the EU Herald published the Fifth Money Laundering Directive, which deals with virtual currency.

HOW BETWEEN THE INTRODUCTION

The island of Malta continues to maintain the status of an innovator in the economic sphere and introduce bills aimed at the promotion and development of innovative technologies and services.

One of the first steps in this area was the approval of 3 bills affecting the entire structure of the digital currency world.

They are designed to regulate innovative technological services, virtual financial assets, to promote transparency of activities regarding cryptocurrency.

First of all, the bills touched the digital blockchain platform. To control and promote development, a special body was created – the Digital Innovation Agency.

The direct tasks of the MATs are to promote the development of innovative technological ideas and the registration of entities implementing innovative technologies and services.

The fact that the system is regulated by the state and has clear and transparent legislative acts has attracted large digital exchanges. Among them are Binance, OKEx and other, no less well-known companies.

HOW DOES THE 5 DIRECTIVE TELL AS TO MONEY LAUNDERING FOR LARGE COMPANIES

5 The Anti-Money Laundering Directive will affect virtual currency exchanges and virtual wallet providers, which become full-fledged legal entities with respect to the law on combating money laundering.

Despite its popularity, this industry is just beginning to emerge and spread.

Legal regulation of digital exchanges will lead to the strengthening of the positions of large companies at the state level, and will expand the activities regarding financial institutions.

But, in turn, it will require greater returns to meet specified standards. This can lead to loss of human resources or even business. However, those companies that can comply with the regulatory framework will reach a new level.

Regulatory obligations will apply to cryptocurrency exchanges and digital wallets, as well as all electronic convectors, through which crypto, such as bitcoin and peers, are exchanged for standard currency, and in reverse.

It should be noted that legislative norms are not enough to prevent money laundering using an electronic cryptocurrency convector.

An exchange between private individuals through peer-to-peer transactions remains uncontrolled. With the growing popularity of cryptocurrencies, such transactions are becoming more common.

But, in any case, this is the right step and movement in the right direction. Confirmation of this will be the legalization of gambling, which also occurred on the island of Malta. It was there that a comfortable environment was created for the development of companies owning a gambling business.

Moreover, their activities are strictly regulated, but this only contributes to their development and prosperity.

But there are countries with a high level of risk, the control of which will take place at a more stringent level. In such countries, stringent regulatory procedures will be introduced. Each client from such a country will be required to obtain a preliminary agreement on the activity.

At the same time, friendly states should also tighten the procedure for creating branches and subsidiaries from blacklisted countries. At the moment, there are no state regulatory legal acts of the member countries of the association.

But most likely a standard approach will be taken in relation to high-risk countries.

In addition, all EU member states are required to maintain a single central electronic database for individuals and legal entities with an open bank account or cell. Such a system will track and identify each owner.

Access to the register will be given to supervisory authorities, using which they will be able to fulfill their duties.

All member states of the European Union, based on the 5 Anti-Money Laundering Directive, will be able to tighten requirements as necessary and at their discretion.

Our highly qualified specialists at Eternity Law International will be happy to provide you with assistance in resolving this issue.

You could be interested

Obtaining а citizenship of Grenada

Obtaining citizenship of Grenada for the acquisition of real estate – recommendations and reviews. Even the global epidemic of Covid 19 from the Middle Kingdom is not able to interfere with obtaining the coveted citizenship of this country. To do this, you just need to purchase real estate there for a total amount of 220...

EMI license: obligations, licensing process, costs 

The quantity of licenses issued to EMIs in the EU has been growing in the last few years. This is explained by the democratization of the financial sector and the market demands for the creation of new services and products tailored to the digital needs of incoming clients. This is an overview of the main...

Asset management license in UK

Such licensing type is available to citizens of all countries of the world. Approval of the right to work with finances in the British jurisdiction is carried out by the FCA. This independent public body has significant authority among local and foreign residents. The UK is one of the most prestigious global jurisdictions, which results...

Company in the Netherlands

Registration cost 2 800.00 EUR Company renewal cost 2 500.00 EUR Number of directors 1 Corporate tax 25.00% Paid Share Capital 0.01 Mandatory reporting requirements Yes The Kingdom of the Netherlands gained independence at the end of the 16th century, having previously been under Spanish rule. The next century was a century of great breakthroughs...

Best forex-brokers in the Seychelles in 2023

Working with stock exchanges has been considered a good startup for several years. Therefore, new brokers are appearing in different countries, providing their services in the Forex-markets. The Seychelles is no exception. Hundreds of trading-offers can be found here. Such an abundance can confuse even experienced traders. Beginners can fall into the trap of swindlers...

Crypto license in Bulgaria

The Bulgarian’s CB together with the Commissions for Supervision of Financial’s Operations is the controlling body for the corporations working in cryptosphere. Both structures work with crypto-currency businesses in Bulgaria as well as other controllers in EU-member-states. Besides these bodies, there is also crypto-regulation in Bulgaria. The Bulgarian’s demand is the NRA, they allocate surcharges...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7