The Malta Financial Services Authority has appointed an American company to help it check crypto currency assets.
The authority is currently going through procedures for the approval of cryptocurrency agents – known as virtual financial agents – at least 29 of which have already applied for licences. Once these have been approved, expected by the end of this month, the VFA agents are expected to submit applications for operators like exchanges, wallets and initial coin offerings.
While the VFA agents are expected to do the due diligence on the individuals and entities behind these operators, the MFSA will still require tracking of the assets that flow through them – which is where CipherTrace will come in.
CipherTrace was founded in 2015 by Silicon Valley entrepreneurs and was initially funded by the US Department of Homeland Security Science and Technology and government agency Defense Advanced Research Projects Agency. Its solution was described as being able to gauge and potential risk exposure of businesses including cryptocurrency exchanges, collective investment schemes and initial coin offerings.