Binance Plans to Create Blockchain-Based Bank in Malta

First Blockchain-Based bank in Malta will aim to become the world’s first decentralized community-owned bank. The second largest cryptocurrency exchange Binance is now developing the project called “Founders Bank.”

13 July, AtoZ Markets The second largest cryptocurrency exchange in the world, Binance, is taking steps towards advancing the Blockchain environment on the island of Malta. This time, the exchange is working on the establishment of the Blockchain-based bank with tokenized ownership in Malta.

Binance Plans to Create Blockchain-Based Bank in Malta

The planned project is called “Founders Bank” and it would be owned by cryptocurrency investors in Malta, according to online media reports. The bank will be based in Malta, which is known for its crypto-friendly regulations. 

Earlier this year, Malta has adopted a strong direction to become the “Blockchain Island”, as the country has made it clear it is ready to put efforts in order to achieve its goal.

In March, Binance has chosen Malta as the location for their new headquarters. Malta has welcomed Binance, as the company looked into starting the upcoming partnerships with local banks to allow fiat-to-cryptocurrency deposits and withdrawals as soon as possible. 

Binance has already invested a 5 percent stake with other anchor investors at a $155 million pre-money valuation.

Maltese Crypto Environment

The “Founders Bank” project aims to become the world’s first decentralized bank. The owners of the bank will be granted “legally-binding equity tokens” in return for their investment. The tokens will be issued through the Blockchain-based equity fundraising platform Neufund. 

According to online reports, the bank will need to apply for a license from Maltese regulators to comply with the EU financial laws. A junior minister within the Office of the Prime Minister of Malta, Silvio Schembri, has reportedly stated that the island “is honored to be chosen as the location of the first global community-owned bank.”

At the end of last month, the nation has introduced three bills that are linked to cryptocurrencies, distributed ledger technology, and Blockchain. The introduction of three bills is expected to make Malta one of the first countries in the world to pass the specific regulation in regards to Blockchain technology. There are three bills that are numbered 43, 44, and 45. They are named “The Innovative Technology Arrangements and Services Act,” “The Virtual Financial Assets Act,” and “The Malta Digital Innovation Authority Act,” respectively.

Think we missed something? Let us know in the comments section below. 

Share Your Opinion, Write a Comment