Following the landmark regulation of Malta’s virtual currency space, Binance, the world’s second largest crypto exchange look set to lead a surge of investors into the region.
According to a Bloomberg report, Binance is laying the groundwork for “Founders Bank,” a new bank where owners will be cryptocurrency investors. Alongside other investors, Binance is staking 5% at a 133 million-euro ($155 million) pre-money valuation, towards the inception of the financial institution.
Equity fundraising for Founders Bank is being conducted on the blockchain based platform NeuFund, with the equity-token sale conducted under German regulations in collaboration with an unnamed stock exchange in Europe according to a Binance statement.
Malta’s Junior minister for financial services, digital economy and innovation, Silvio Schembri, expressed delight at the new type of bank coming to Malta,
“We are honored to be chosen as the location of the first global community-owned bank,” he said.
Undoubtedly, Binance’s choice to invest in the region was spurred by the inauguration of three new bills to encourage blockchain-based ventures in the country. The bills have “created a fertile environment for blockchain companies and cleared the uncertainties surrounding the market for decentralized assets.” the statement revealed.
Founders Bank will now seek a license from Maltese regulators before launching its operation under the EU financial laws, even though the parties have provided no timeframe.
For Malta and Binance, the stage is set for a great partnership as Chief Executive Officer Zhao Changpeng had in March announced that the exchange is close to securing a deal with local Maltese banks that can provide access to deposits and withdrawals for fiat to crypto traders.
“We are very confident we can announce a banking partnership there soon. Malta is very progressive when it comes to crypto and fintech,” Binance CEO, Zhao, March 2018.
The exchange also has not ruled out plans to move entirely to Malta and can now count on the island nation’s blockchain friendly ecosystem.