With increased scrutiny of regulatory bodies from around the globe, crypto exchanges operators are finding it somewhat difficult to adapt to the new rules which has resulted in rather radical solutions. The world’s largest cryptocurrency exchange with a $1.7 billion daily trading volume Binance announced its decision to relocate its headquarters to Malta.
After receiving an official warning letter from the Japanese Financial Services Authority (FSA) demanding to obtain license for continuing its operations in the country, Binance began reviewing potential locations to establish their business. Binance team took a decision that Malta is a perfect country to invest in due to its existing pro-blockchain legislation and the stability that is offered to financial technology companies by means of its regulatory framework.
Together with its current team, the company has transferred its resources to Malta. Now it has plans to hire more than 200 full-time employees which will enable to fully establish the company in the new region. It is quite oblivious that the relocation of headquarters for such a large startup as Binance usually comes with financial and regulatory difficulties. Nevertheless, in this very case, according to the company’s opinion, it’s worth it.
Malta has always been known for its pro-blockchain attitude that without any doubts gives Binance confidence that the taken decision to set up operations in Malta will bring its benefits to the company’s business and further development. A consultation document on the establishment of the Malta Digital Innovation Authority was revealed last month, and at the moment the country’s experts are working on development of a ‘Virtual Currency Act’ that will serve as a basis for a first-of-its-kind framework designed for regulation of blockchain-driven investment operations such as token sales.
Binance CEO & Founder, Zhao Changpeng explained: “After meeting with Parliamentary Secretary, Mr Silvio Schembri, we were impressed by the logical, clear and forward thinking nature of Malta’s leadership. After reviewing a proposal bill, we are convinced that Malta will be the next hotbed for innovative blockchain companies, and a centre of the blockchain ecosystem in Europe. Binance is committed to lending our expertise to help shape a healthy regulatory framework as well as providing funds for other blockchain start-ups to grow the industry further in Malta.”
Zhao has also informed that they are planning to establish a banking partnership in Malta quite soon. He has also added that in the nearest future Binance will start a “fiat-to-crypto exchange” in the region, and is to secure a deal with local banks that will allow it to get access to deposits and withdrawals.
Malta’s Parliamentary Secretary for Financial Services, Digital Economy Silvio Schembri positively welcomed the news about Binance decision to invest in their country and highlighted that Binance’s presence in the region would contribute to Malta’s evolving into the Blockchain Island.