Binance, the world’s largest crypto exchange by trade volume, has signed a Memorandum of Understanding (MOU) with the Malta Stock Exchange’s fintech and digital asset subsidiary, MSX PLC to jointly launch a new security token trading platform.
The agreement for the new security token trading platform would be operated on the self-acclaimed “blockchain island” was signed on Tuesday, 11 September.
The agreement was signed by MSE chairman Joseph Portelli and Binance Chief Financial Officer Wei Zhou with Malta’s Minister for Finance, Prof Edward Scicluna, also in attendance.
Edward Scicluna, the Finance Minister of Malta during a press conference pitch for the forthcoming trading platform, commended the crypto industry, declaring that the nation will not miss an opportunity to take advantage of new innovations.
He further explained that Binance is set to benefit from the Malta Stock Exchange’s “26-year track record of operating as a regulated stock exchange,” with the associated regulatory compliance while building on Binance’s business model and global reach.
Granted, Edward Scicluna explained, cryptocurrency activities have their inherent risks, however, “this is not an excuse to let it go by and be taken up by others.” To that effect, he gave details that Malta is still committed to creating a suitable regulatory framework for the cryptocurrency sector and for that reason, the MSX had established a new entity, the MSX PLC, to specifically explore fintech and digital assets.
In an accord with the Financial Minister’s words, the MSE chairman Joseph Portelli made known during the press conference that “whether you like it or not, the [blockchain] technology is here to stay.”
Malta and Binance have collaborated in the past, such as when Neufund, a blockchain startup partnered with Binance to create the world’s first decentralized stock exchange. The deal with Neufund would have created a trading platform for tokenized securities.