The Malta Bankers’ Association has recently organised a seminar with the theme ‘Blockchain, Innovative Technologies and Regulation’, targeting the recently enacted legislation. The half-day event was held at Le Meridien St Julian’s Hotel and Spa.

The seminar was very well-attended by senior bankers and financial services professionals, including Prof John Mamo, MFSA Chairman. It was led by Leonard Bonello and James Farrugia, Partners at Ganado Advocates, who gave expert presentations about the new laws and proposed regulations having been involved at every stage of their development.

An interesting panel discussion followed, with the participation of Patrick Young, who sits on the board of the Blockchain Malta Association and J P Fabri, lead director on Blockchain and cryptocurrency within the ARQ Group.

Of particular interest was the session which gave participants an overview of the various types of service providers in the market, their business models and the types of risks which may be associated with each category of service providers. The Fifth Anti-Money Laundering Directive and its applicability to such service providers was also discussed.

In his opening remarks, MBA chairman Marcel Cassar gave a brief overview of how the banks and central banks across the globe are looking at blockchain and its many applications which can lead to smarter, more efficient, cost-effective and secure processes. He noted in particular the collaboration taking place among banks with fintechs, educational institutions and banking associations in this regard.

Mr Cassar also emphasised the importance that all banks take an active interest in developments which will inevitably impact their business models and industry,

 “Blockchain is not a destructive force that will make banks redundant but an opportunity for them to transform and become more efficient,” he said.

At the same time he had words of caution about cryptocurrencies which present risks and vulnerabilities that are still new or even unknown. He appealed to the authorities to keep the banks central to the consultation, not as some lobby or to protect their turf but because their experience in compliance and risk management standards can add safety, security and integrity to the process.

He also appealed to his members to be well-informed as well as sharpen their lines of defence when dealing and establishing business relationships with, operators in these technologies, also noting that there is no room for complacency and there may not be a second chance.