Binance, the world’s largest cryptocurrency exchange has decided to move to Malta as the country’s Prime Minister Joseph Muscat heartily welcomed the company. Binance will offer fiat-to-crypto trading pairs to the small island nation.
The founder Zhao Changpeng told Bloomberg News that Binance was about to close partnerships with several banks in Malta.
Barely more than a year old, Binance has become the world’s biggest crypto exchange by daily trade volume. Zhao said that his company, which was originally based in Hong Kong, is currently advising the Malta Government on its new Malta Digital Innovation Authority – a legal government body meant to license cryptocurrency related business.
Regulatory crackdown in China and Japan
Lately, Binance has encountered legal issues in China and Japan as both countries regulators are clamping down on crypto-businesses. This may have been the primary reason Binance decided to shift base. The cryptocurrency exchange is currently facing regulatory policy issues in Japan as the country’s financial regulatory agency sent a warning letter to Binance to register with Japan’s authorized regulators.
While speaking to the media, Zhao said “We are very confident we can announce a banking partnership there soon. Malta is very progressive when it comes to Cryptocurrency and fintech.”
Prime Minister Muscat also tweeted: “Welcome to #Malta @binance. We aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies -JM”
As of now, it is unknown if Malta’s regulators have granted Binance a license or whether they are planning to do so. However, with such positive response from Malta, Binance might entry in the European island country could encourage other Crypto-exchange companies to migrate to other crypto-friendly nations.
This move will reportedly be beneficial to Malta, and may carve it a role as a world Fintech leader.