Malta's financial regulator issues warning on the use of cryptocurrencies

The Financial Services Authority of Malta (MFSA) has issued a statement warning citizens about the adoption of cryptocurrencies, after the first Bitcoin ATM was installed in the country. Although the statement does not express any type of regulation for Bitcoin, it does not emit threats for those who decide to operate with cryptocurrencies.

The installation of the first Bitcoin ATM (ATM) in Malta caught the attention of local and international press last week. Initially, a group that defends cryptocurrencies in the country had launched a crowdfunding campaign (another denomination for ICOs), to finance the first ATM, however, after a few days of having informed users about the offer, an entrepreneur Surprisingly he installed the first copy.

In the warning statement, the MFSA states the following:

"Unlike traditional money, the acceptance of payment in virtual currency depends entirely on the voluntary consent of the receiver. In addition, service providers in relation to cryptocurrencies are not currently regulated by law, nor authorized by the MFSA. "
In this sense, the regulatory body has emphasized that the fact that there is no legal framework that regulates cryptocurrencies, makes the use of these assets a potential risk for users. Therefore, the authority advises the community to take precautions and make sure they understand the risks involved in financial activities with these virtual currencies.

Regarding this point, the MFSA said:

"You should take the same precautions with your digital wallet as you would with your conventional wallet, avoiding having large amounts of assets and ensuring that your funds remain safe."
For its part, the Maltese group of cryptocurrency defense, Bitmalta, has responded to the MFSA's statement emphatically, accusing the authority of hindering the use of digital currencies in the country.

Bitmalta affirms that they are disappointed, since the Prime Minister, Joseph Muscat; and the Parliamentary Secretary of Financial Services, Digital Economy and Innovation, have openly advocated the adoption of Blockchain technology and cryptocurrencies in Malta, so the MFSA statement ignores the development of these assets in the country, instead of educate the public about them.