Binance Exchange Welcomed to Malta by Prime Minister
One of the biggest hurdles for Cryptocurrency is where does it fit and how can it be regulated and integrated into current systems? Governments are in complete turmoil because they don’t know what to do with it! The biggest concern is the ICO space. Regulators consider Initial Coin Offerings as securities but exchanges who list ICO’s are not registered to trade securities. This then allows the regulators to come down heavy using the ICO card as a reason to close down exchange businesses.
Fortunately, Cryptocurrency is borderless. When any particular country threatens closure of a crypto exchange naturally that exchange will seek to go where this threat will no longer hang over them.
Binance – A brief history
Binance is the new kid on the block and only began its operations in the mid part of 2017. The founder is Changpeng Zhao better known as CZ, born in Jiangsu, China. Today it is the largest (by trading volume) crypto exchange. One of the key factors to the meteoric growth is the acceptance of new coins onto its platform. Binance operates out of Hong Kong but came under the scrutiny of the Hong Kong SFC (Securities & Futures Commission), there were not happy about the way the exchange added ICO tokens to its platform. Binance then looked to move its operation to Japan, in the knowledge that Japan is a crypto friendly nation. Then on March 23rd, the Japnese FSA (Finacial Services Authority) began to issue warnings to Binance about operating in the country without the requisite licenses. So along with the Hong Kong pressures, Binance was finding it difficult to find a home.
Malta and Blockchain
Step up Malta. Within the highly regulated Eurozone Malta is striving to carve a reputation for itself as ‘global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world-class fintech companies.’ The country is obviously keen on Cryptocurrencies the Prime Minister, Joseph Muscat Tweeted a personal welcome to Binance from his Twitter account.
In addition, Bloomberg has been quoted as saying that Binance is advising the Maltese Government on its future plans for cryptocurrency. Silvio Schembri, the country’s Parliamentary Secretary for the Digital Economy, has outlined a 3-step process that would see Malta becoming a crypto powerhouse. His first objective is to establish the Countries Digital Innovation Authority, then steps 2 and 3 are to pass appropriate pieces of legislation that would create the framework for certification of companies and the regulation of the ICO market respectively.
Binance – The future
One of the missing pieces for Biance has been its failure to acceptfiat currency, the move to Malta may just resolve this issue. As part of the deal, the platform is negotiating with Maltese banks to have access to deposit and withdrawal services. This would surely increase the market share Binance has and begin to concern existing exchanges such as Coinbase. The future certainly seems bright for CZ and Binance, and it also sticks 2 fingers up to the regulators who need to start embracing and not decrying cryptocurrency. A great result.