December 18, 2018 AtoZ Markets – Earlier this year, Binanсe bank, which was to become the first blockchain bank of Malta, was denied a license due to an order of the European Central Bank. However it is still possible that soon there will be the first bank which will be servicing crypto and blockchain companies, as well as high-income individuals on the “Blockchain Island”. Will it change the market game?
The Is Some Hope in Turning Malta into first Blockchain Bank's homeland
Despite the previous possible participation of the Maltese banking institutions in money-laundering frauds involving the Venezuelan elite, as it was mentioned earlier in several publications, this exotic island still attracts investors these are crypto enthusiasts and financiers who want to turn Malta into a blockchain hub. OK Blockchain Capital Limited, OK Group’s investment arm announced that its anchor investor RnF Finance Limited, a Malta based company is applying with the Malta Financial Services Authority for authorization to act as a credit institution. RnF CEO and Founder Roderick Psailla opened several banks in Malta during his 28-year career in the banking sector over the past 10 years. Until recently, Psailla also headed the AgriBank credit organization licensed in Malta. In his interview with one of the U.S. media outlets, Psailla said that when operative the new bank will return proper banking services to their clients. According to the former General Director of AgriBank, the financial institution will operate in four main areas: the provision of banking services to corporate clients; lending; private banking and money management. Psailla emphasized that the company focuses on large corporations and private clients, and the mentality will be that no industry has a veto right in advance, but each application will be considered on a case-by-case basis. Such tactics of a new financial company should provide crypto exchanges and companies that produce security tokens with the ability to be serviced, like other companies, added Psailla. The new bank intends to invest in blockchain and artificial intelligence technologies, especially in its early years. This would allow the bank to effectively bind customers while ensuring compliance based on risks.
Investors Stay Positive about The Upcoming Partnership
Tian Ying, the founder of OK Blockchain Capital Limited, in one of her recent interviews, expressed the company's positive attitude from working with Psailla and his team of bankers, calling the new project in Malta exciting. Tim Byun, director of risk management and head of government relations at OK Group, called Malta the first driving force that comprehensively regulated the blockchain industry. In addition, Byun said that his team is pleased to participate in the new banking business with RnF Finance Limited. "Malta’s robust regulatory framework and support for new industries will help expand opportunities on Blockchain Island", Byun added.
Taking seriously a blockchain technology as any other financial activity is quite understandable, due to the recent illegal activity of Maltese banking services in Venezuelan financial frauds. On July 4, 2018, the Maltese Parliament has officially passed 3 bills into law, establishing the first regulatory framework for blockchain, cryptocurrency, and DLT (Distributed Ledger Technology). Such actions made Malta the first country in the world to provide an official set of regulations for operators in the cryptocurrency and most desirable location to set up shop in the blockchain space. The first law, known as the Malta Digital Innovation Authority Act (MDIA Act), supposed to focus on internal governance arrangements. The second law, Innovative Technology Arrangement and Services Act (ITAS Act), will deal with DLT arrangements and certifications of DLT platforms. The third law, Virtual Financial Assets Act (VFA Act), will establish the regulatory regime governing ICOs, cryptocurrency exchanges, wallet providers, etc. According to the new crypto bank officials, RnF is planned to start operating by the middle of next year, which is a subject to regulatory approval.
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