Cryptocurrency payment firm Crypto.com has obtained Malta’s Electronic Money Institution (EMI) license from the Malta Financial Services Authority (MFSA), thus allowing it to issue payment cards and provide direct bank transfers to customers in the European island country.
It is important to note that Crypto.com is the first cryptocurrency company to get such a license. The firm received the permit because it worked closely with the regulator to enable the process.
Based on the development, Hong Kong-based Crypto.com stated that it plans to become fully compliant with regulations that govern the crypto industry in every nation where it operates.
Kris Marszalek, crypto.com CEO and co-founder, talked about the firm’s achievement regarding getting the license.
“We have been committed from day one to building a fully regulated business. Working with regulators is the best way to fulfil our mission of accelerating the world’s transition to cryptocurrency. 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 EMI is just an additional license that allows Crypto.com to dig deeper into its operations in Malta. In May, the firm became the first global crypto company to get a Virtual Financial Assets (VFA) license from the MFSA, thus allowing the company to provide crypto trading services to customers in the nation.
Crypto.com once had hopes of getting Malta’s EMI license. In February last year, the MFSA highlighted why the exchange was not authorised to operate in the country.
In 2018, Malta was considered one of the most crypto-friendly nations and its crypto regulations regarded as the most innovative globally. However, with time, the country enforced stricter regulations in its financial industry. As a result, all financial and banking firms, including crypto firms, are expected to obtain several licenses to provide their services.
About 70% of the firms, which completed the first stage of securing the MFSA license failed to continue the application process after the regulator enhanced its regulations due to money-laundering concerns raised by the European Union.
Last month, the Financial Action Task Force (FATF) put Malta among nations taking adequate measures to prevent financial crime.
Global Regulatory Scrutiny
The necessity to acquire appropriate licenses has become the key to operate cryptocurrency businesses safely. Many regulators across the globe have beefed up their scrutiny of cryptocurrency exchanges, which do business without appropriate licenses.
Recently, crypto exchange Binance has been facing new regulatory crackdowns from several nations, including Japan, the UK, Canada, and others.
Last month, the UK’s regulator banned Binance from conducting regulated activities in the nation.
In May, the UK withdrew Binance’s application to register with the Financial Conduct Authority because it did not meet anti-money laundering requirements. The regulator, therefore, ordered the exchange to add a notice on its app and website to show U.K users that it is not allowed to conduct any regulated activities in the nation.
Meanwhile, regulators in Thailand, Japan, and Canada also issued similar warnings to the exchange.
Canada’s Ontario Securities Commission recently accused Binance of failing to comply with regulations in the country. Japan’s Financial Service Agency also recently announced that the exchange was carrying out its business in the nation without permission.
A few days ago, Thailand’s Securities and Exchange Commission filed criminal charges against Binance, accusing the exchange of doing business in the nation without legal approval.
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