On the 23rd March 2018, Binance, the largest company in the cryptocurrency sector announced that it shall be relocating its operations and setting up shop in Malta. The news was welcomed by the Government and local technology service providers alike and comes just a few weeks after the Government unveiled its plans to create a legal and regulatory framework for businesses involved in the Fintech sector, particularly those which shall be dealing with cryptocurrency.
Binance- world’s largest cryptocurrency exchange relocates to Malta
Binance began operating in July 2017 from its offices in Hong Kong. Within just nine months, it managed to establish itself as the largest online platform for cryptocurrency in the world by traded value, serving six million customers and carrying out financial transactions which amount to more than EUR1.5 billion daily.
In an interview with Bloomberg, Zhao Changpend who founded Binance announced that the company is expected to start operating in Malta shortly, and that it is already at an advanced stage of concluding agreements with the local banks on access to deposits and withdrawals.
After encountering various difficulties with the Hong Kong authorities whose position on the trading of cryptocurrencies remains uncertain and unreceptive to change, the crypto-exchange set its eyes on Malta which Zhao considers as “very progressive when it comes to crypto and fintech.”. Earlier this year, Zhao was invited by the Government to review a bill which once enacted as the law that would favour cryptocurrency exchanges and create jobs in Malta.
Malta, the global trailblazers in Fintech, RegTech and DLT technology regulation
TVM reports that Binance’s redomicilation will result in the creation of 200 new jobs in Malta. In reaction to the news, Maltese Prime Minister Joseph Muscat welcomed Binance to Malta and reaffirmed Malta’s stance “to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world-class fintech companies.”.
Parliamentary Secretary Silvio Schembri highlighted that the Government’s efforts are now coming to fruition as Malta is already attracting the biggest names in the industry and putting itself at the forefront as a top-jurisdiction for FinTech businesses.
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The Next Step
Malta is making leaps in DLT and virtual currency regulations and making a name for itself as it had done a decade and a half ago with the iGaming industry. As noted by Prime Minister Muscat, the next challenge shall be to attract enough employees and to provide opportunities and training to those who wish to work in this burgeoning sector.
Our Fintech Practice
At Chetcuti Cauchi Advocates, we welcome the innovations which the financial services sector is currently undergoing, and seek to provide bespoke solutions to our clients by fusing together traditional legal notions with new technologies.
Should you wish to set up a meeting to discuss how you could be one of the pioneers to explore Malta's potential as a fintech hub, kindly contact us and we would be happy to call you back.
