Binance has recently decided to relocate to Malta, and the new reports claim that it is already making future plans for growth and development in this country. The new announcement says that Binance aims to open the first decentralized bank ever – one that will be owned by the crypto community.
First Decentralized Bank Comes to Malta
Malta has been one of the most important countries for cryptocurrencies recently, and definitely one with the most crypto-friendly development. The country even made headlines for having the highest volume when it comes to crypto trades, beating even countries like Japan or South Korea.
A large part of this increase was possible due to the fact that Binance has decided to relocate, and has chosen Malta to be its new home. Now, Binance is attracting even more attention to this country, by announcing plans to start the first community-owned bank, which will be completely decentralized.
Binance has already started going down the path of unraveling this plan and has managed to secure around 5% stake in the bank. This roughly translates to around $133 million, and Binance represents only one of the new Founders Bank’s investors. In the future, the bank plans to hold its own token sale, which will be possible in collaboration with Neufund, a tokenized funding platform based in Berlin.
Due to the involvement of the Germany-based platform, the token sale will follow Germany’s regulations, and the sale will go through one of the German crypto exchanges.
As for the Maltese law, the bank has yet to receive the necessary licenses in order to legally exist and start its business. Still, Changpeng Zhao, the CEO of Binance, firmly believes that all the necessary documents will be acquired in due time. He even tweeted that a lot can happen in three months and that Malta has become a perfect place for fusing the traditional finance with blockchain technology.
Malta is the fusion ground for traditional and blockchain finance now. A lot can happen in 3 short months. https://t.co/byUbqmUMN5
— CZ (not giving crypto away) (@cz_binance) July 12, 2018
He also believes that Binance’s profit for this year will be in between $500 million and $1 billion.
The Conditions are Perfect for the Bank to Appear
Malta made headlines once again, only a few weeks before this announcement, when the country decided to pass three crypto-related Bills. The Bills have made it one of the crypto-friendliest countries around the globe, which has already started to attract investors, ICOs, and other crypto and blockchain, enthusiasts. Additionally, the country established the Malta Digital Innovation Authority, which was in charge of creating special guidelines for the providers of these technologies.
Silvio Schembri, Maltese Prime Minister Office’s Junior officer for the digital economy, innovation, and financial services, has stated that the country is honored to be the one where the first bank owned by the community will come to life. In the last few years, a lot of blockchain and crypto-related companies decided to come to Malta.
Their goal was to attempt and close the gap between banks and crypto world, and their efforts eventually led to perfect conditions for this bank to appear and thrive.