In recent times, a couple of well known multi-billion dollar cryptocurrency trading platforms such as Binance, Bitfinex and Coinbase have been noted to make moves towards the establishment of bank accounts in Malta. What might be the secret behind such calculated initiatives? Why Malta?
A country with a pro-blockchain legislation
Malta, an European Union (EU) member country reportedly has a robust financial sector and a thriving economy, leaving its mark on the global economy. It`s banking sector is buoyant and welcoming of cryptocurrency businesses.
Malta began to make its presence felt in the cryptocurrency industry last year when it allowed its officials to get into business engagements with some of the widely known cryptocurrency companies such as Binance. These engagements were intended to facilitate the growth and development of the cryptocurrency and blockchain sector.
In view of the pro-blockchain and cryptocurrency environment prevalent in Malta, Binance made a strategic business move barely three months ago to officially move its headquarters to Malta for good. The company is looking to take advantage of the Malta`s welcoming environment to establish business partnerships with local banks and other financial institutions. Binance CEO Changpeng Zhao (CZ) is cited to have said: “We are very confident we can announce a banking partnership there soon. Malta is very progressive when it comes to crypto and fintech.”
In a statement issued by the Binance team, they disclosed an impending initiative spearheaded by the current government of Malta to enact a law that will allow for the regulation of cryptocurrency and blockchain operations by local authorities. This will be in pursuance of the government`s resolve to do whatever is within its legitimate power to ensure that the cryptocurrency industry blossoms in Malta and becomes a major player in the country`s economy.
The Binance team explained:
“An E.U. member nation, Malta’s government is pro-blockchain, and is actively building a supportive regulatory and technical infrastructure. Plans for a Malta Digital Innovation Authority were revealed last month, and the country is in the process of formalizing a ‘Virtual Currency Act’ that will pave the way for a first-of-its-kind auditing framework made specifically to regulate blockchain-driven investment operations such as token sales”.
Binance firms its roots in Malta
Binance appears to be constantly on the go, leaving no stone unturned in its quest to make the most of its presence in Malta. The company reportedly obtained a bank account and entered into a partnership arrangement with a local bank earlier this week. This move would allow for the possible integration of fiat currency pairs such as the British pound and the US dollar.
The establishment of the bank account is intended to allow Binance handle the banks fiat-to-crypto operations. This major move by Binance is expected to lead to an influx of cryptocurrency companies and exchanges into Malta who would be bent on racking in some benefits from pro-blockchain legislation and entering into favorable partnerships with local banks.
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Image from Crypto-News.net, Telegraph