Whereas some world leaders and governments have been super sceptical of cryptocurrencies and some even going as far as to take a strict opposition stance on the technology, some are opening their arms wide to the tech that could completely revolutionise monetary transactions as we know it today. The island of Malta, as small as it is, happens to be even more daring in action than its land size. Its government has recently approved for cryptocurrency and blockchain firm, Binance, to operate legally within its borders.
The island’s PM, Joseph Muscat, announced their approval of Binance establishing offices in the state and running its operations from there. He stated that this is part of plans and a desire to make Malta “global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies”, as they see the island to be a “blockchain island”.
Binance And The Maltese Financial Ecosystem
This isn’t so surprising for people who have a bit of a fair idea of the nature of the island. With a population of about 450,000 , Malta is known for its extreme gambling industry and booming banking and finance industry. Yesterday, Friday the 23rd of March, Binance also officially announced that it was soon beginning operations on the island of Malta after having reached an agreement with the authorities of the state.
This “relocation” by the crypto firm comes as a result of the Chinese government’s strict regulations on cryptocurrencies and ICOs in the last few months which is causing most financial institutions that are into these technologies to look elsewhere for markets.
The company will start fiat payment transactions very soon as the economic climate of the island already favours banking and finance extensively. When asked why they chose to settle for Malta amongst all the other countries available, Binance explained that its decision was due to [Malta] existing pro-blockchain legislation and the stability that it offers financial technology companies through its regulatory framework.” And Malta’s acceptance of Binance happens to be the Deus ex machina that the firm craved for, considering that Japan also issued a cease operation order to Binance. Thus, as Binance closes in Japan, it re-emerges in a an even crypto-friendly environment