Binance backs decentralized Founders Bank in Malta
The Founders Bank is owned by a group of cryptocurrency investors from around the world.
Just recently Binance announced that it would be expanding its base to Malta as well. If you are paying attention, you know that many cryptocurrency related companies are moving to Malta.
Malta-based company Palladium will launch the world’s first so-called initial convertible coin offering (ICCO) with two partners including Bittrex, a press release announced July 10. And of course Justin Sun of Tron is enthusiastic about Malta.
Coinxion is a stealth-based startup company that is based out of Malta and already has a fully-functional marketplace product, a DAO over 90 workers strong, 40 managers, 12 executives and have yet to launch.
I say Coinxion is doing everything right. Stay tuned for a more detailed article about their business model, progress and team.
#TRON strongly supports the great foresight of PM @JosephMuscat_JM and hopes to build up Blockchain Island with Malta gov. We are seriously considering invest and operate in Malta in the following weeks with announcement by our strategic partner @binance @cz_binance #TRX $TRX
— Justin Sun (@justinsuntron) March 26, 2018
Why Malta is Attractive?
At a time when countries globally are expressing ambivalence about and cracking down on cryptocurrencies, Malta is changing the landscape. They are eliminating the uncertainty that paralyzes cryptocurrency and blockchain related companies. Their regulations covers how brokerages, exchanges, asset managers and traders operate, making them among the broadest set of regulations for the industry.
The Malta government wrote in a consultation paper:
The proposed framework will offer legal certainty in a space that is currently unregulated
It doesn’t hurt that Malta has a national tax policy that permits international companies on the island to pay a rate of as little as 5 percent.
So with the news that Binance backs decentralized Founders Bank in Malta, we will see more established blockchain companies making that move. As a matter of fact, the Binance exchange has a 5% stake in the bank and Neufund is also collaborating on the deal.
Surprisingly, the bank is valued at $155 million before it’s launch. It is required that the Founders Bank get a license from the European regulators in Malta and adhere to all regulatory requirements.
So what’s so special about this bank that it has drawn the attention of the crypto community?
The Founders bank would be the world’s first decentralized bank. Moreover, it is the first of its kind community-owned bank backed by a blockchain. However, the bank authorities are awaiting the approval of the necessary permits.
Silvio Schembri, Junior minister for financial services, digital economy and innovation of Malta, stated
We are honored to be chosen as the location of the first global community-owned bank.
The initial investment itself is a huge milestone for the bank. Further, the authorities plan on issuing the bank’s own “legally-binding equity tokens”, which essentially mean a new digital token. The probability that the Founders Bank will make a splash in the cryptocurrency and blockchain community is high since Binance is a player.
What do you think about Binance Backs Decentralized Founders Bank in Malta? Talk about it in the comments below.
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