Blockchain and cryptocurrency firms trying to open bank accounts face troubles in Malta

Malta, the so-called blockchain island, has been trying to attract blockchain and cryptocurrency projects. As part of this effort, it's introduced a blockchain regulatory framework, becoming one of the first countries in the world to have such legislation.

However, it turns out blockchain and cryptocurrency companies are encountering problems when trying to set up bank accounts in Malta, Times of Malta reports. Financial institutions are “politely” turning down such businesses. Some claim banks do not differentiate between cryptocurrency and blockchain, and both are met with similar distrust.

Meanwhile, Silvio Schembri, Parliamentary Secretary for Financial Services, claimed some banks showed preference over blockchain businesses. He said, “One should make a clear distinction between blockchain operators and crypto operators.” According to Schembri, banks are expecting cryptocurrency businesses to have a Malta Financial Services Authority (MFSA) license. Currently, 28 applicants have registered their application with MFSA and are awaiting a decision.