Cryptocurrencies and financial crime : implications to the banking institutions in Malta

Abstract

Research Purpose: The aim of this research is to identify how the introduction of cryptocurrencies was felt within the banking industry, especially by the Maltese banks. Financial crime associated with cryptocurrencies is another primary subject being tackled in this study. We thrive to get a better understanding on whether banks are ready to start providing crypto related services, and whether disruption is happening due to this emerging technology. Research Questions and Methodology: Interviews were used to gather primary data from both banks and experts coming from the concerned industry. The information gathered is examined and assessed together so that research questions are answered. General Findings: From the data gathered is seems that although some form of disruption is being felt, banks are still not ready to embrace this new technology the main reason being is that they believe cryptocurrencies are anonymous. Blockchain is more likely to be accustomed than cryptocurrencies within banks. Better regulations and law enforcement should be in place to help encourage banks to get into the crypto world, while also help mitigate financial crime deriving from the use of cryptocurrencies. There is lack of knowledge when it comes to cryptocurrencies and financial crime.