Malta as ‘Cryptocurrency capital’ is a ‘Calculated risk’ says Malta leader

Binance is a cryptocurrency exchange. It is one of the most popular and fastest growing exchanges founded by Changpeng Zhao is a Chinese-Canadian business executive. The company was originally founded in China but moved its servers and headquarters out of the country and into Japan after the Chinese government ban on cryptocurrency trading in September 2017. By March 2018 the company had settled offices in Taiwan.

Binance announced its intentions to open an office in Malta after stricter regulations in Japan and China. This move will boost the small Mediterranean island’s ambitions to become a global hub for cryptocurrency and fintech. Malta, a tiny island, may seem like an unusual choice for a company that used to operate among the largest countries of the world. The move in reaction as the governments around the world rushes to regulate or even ban fledgeling and speculative cryptocurrency exchanges.

Malta is looking to build a nation that will be a hub for the growing blockchain technology thus creating a safe haven for the digital currencies. The Prime minister of Malta, Joseph Muscat, heartily welcomed the crypto giant and shared his desire for Malta to become “global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world-class fintech companies”. He further added his vision is for Malta to be the “the blockchain island”.

In March 2018, accusations were made that Binance, along with OKex and Huobi, were fabricating up to 92.9% of the trading volumes on their platforms. In addition, Binance plans to move to Jersey to expand its European influence, having achieved a exchange license there, and plans to add fiat pairs including the Euro and the British pound to its supported currencies. Binance also had the idea of stable coins to provide cryptocurrencies and raised $32 million for a stable coin project with three other big exchanges.

Many European countries have been sceptical of cryptocurrencies. While the British government has dragged its heel and going as far as to assign a task force to manage the risks around crypto assets. Malta has drawn a regulatory framework to encourage their use.

Prime Minister Joseph Muscat said on Monday “We’re taking a calculated risk,” by cutting “layers of bureaucracy” and offering fast-track approvals for digital players to set up shop on the island.

“Binance’s presence in Malta sustains our vision, that of making Malta ‘The Blockchain Island’,” said Parliamentary Secretary for Financial Services, Digital Economy & Innovation Silvio Schembri, joining his Prime Minister in welcoming the exchange. This move will definitely help the European customers and will provide an instant boost to the island’s economy.