Companies reportedly struggling to get bank accounts on "blockchain island"

03 Mar, 2019
by David Borman
Companies reportedly struggling to get bank accounts on blockchain island

Despite Malta positioning itself to be a leader in the future of blockchain, so much so as to get the unofficial title "blockchain island," it is being reported by The Times of Malta that most banks in the country are declining to give business to any company connected to cryptocurrency or even blockchain, which is definitely slowing development.

As a result of the government pushing for blockchain to be the future of Malta, many businesses based upon the technology are beginning to open in the nation. Not all are cryptocurrency related, but it is a mixed pot. Quite a few of these businesses are finding it difficult, however, to obtain bank accounts as most banks in the area are declining any cryptocurrency related business until those businesses obtain a Malta Financial Services Authority (MFSA) license, of which none have yet been approved.

This is understandable, however many times the banks don't distinguish between a cryptocurrency company and one simply utilizing blockchain, which has been frustrating for some.

Read more: Is Malta really a blockchain island? Binance CEO certainly thinks so

Parliamentary Secretary for Financial Services Silvio Schembri is quoted in the article, saying:

"The general understanding is that when it comes to crypto operators, banks are waiting for operators to obtain an MFSA licence before opening their doors – which is understandable."

He also said:

"One should make a clear distinction between blockchain operators and crypto operators."

The MFSA is planning to begin issuing licenses as early as this quarter, which may help move things along. In the meantime, it seems blockchain companies are unfortunately getting swept up by regulations that mainly apply to crypto.

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Read more about: Blockchain Malta

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