IMF: the development of the cryptocurrency industry threatens the economy of Malta

Over the past year, the tiny state in the Mediterranean Sea has secured the status of one of the leaders in the field of cryptocurrency and blockchain technology, however, according to experts of the International Monetary Fund (IMF), the development of the industry in Malta can pose a significant threat to the economy. About this writes Coingeek .

Such a conclusion they made in their report , published after a visit to Malta. In particular, the document refers to the risks associated with money laundering and terrorist financing.

IMF experts believe that the growing number of financial companies, the rapid development of new products, the legal environment and the tightening of the labor market seriously burden the Malta Financial Services Authority.

They also say that the country's financial regulator has already come under serious pressure due to the high crime rate.

In addition, representatives of the IMF noted that the threat to the financial stability of the country lies in the development of the gaming industry, as well as the sale of citizenship for investment. Without proper vigilance and high standards of market control, Malta "plays with fire," IMF analysts concluded.

Recall that in 2018 in Malta, extremely loyal regulation of the digital assets market was adopted, as a result of which a favorable environment was created for the development of the industry. In particular, divisions of many large cryptocurrency companies, including the Binance Exchange, were opened on the island.

Malta’s Prime Minister Joseph Muscat also previously stated that cryptocurrencies will inevitably receive mass recognition and become the money of the future.

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