One of the most important virtual currency exchanges, Binance, is working in order to create a blockchain-based bank. The information has been released by Bloomberg on July the 12th, 2018. The owners of the new bank will be digital-coin investors, which is something never seen before in the financial or crypto world.
Binance Plans to Build a Crypto Bank
It seems that Malta will become the home of one of the most innovative banks in the market. Binance is trying to build a bridge between traditional financial institutions and the cryptocurrency world which are usually divided and one against the other. The main intention behind this information is to build the first decentralized and community-owned bank in the world once it receives the necessary permits in the country.
Marc Ostwald, the global strategist at ADM Investor Services International in London, commented on the matter:
“This is fascinating, as a concept. Obviously, they’ll have to meet anti-money-laundering regulators. The question will be, how regulators view this?”
The so-called Founders Bank will be conducting its offering on the blockchain-based fundraising platform known as Neufund. The bank will be issuing ‘legally-binding equity tokens.’ In order to start working the institution will need a license from regulators in the island of Malta and an approval from the European Central Bank (ECB) chaired by Mario Draghi.
Malta Crypto Hub
Malta has experienced a transformation into a blockchain and crypto-related hub. Important firms from the cryptocurrency world have decided to move and settle their operations in the country. We can mention Binance as the most important company and the Polish cryptocurrency exchange BitBay, which decided to leave the Eastern European country searching for a more crypto-friendly environment.
Silvio Schembri, junior minister for financial services, digital economy and innovation within the Office of the Prime Minister of Malta explained:
“We are honoured to be chosen as the location of the first global community-owned bank.”
The equity token will be conducted under German regulations working with important stock exchanges in Europe. Until now, Binance did not disclose the exchange. Some weeks ago, Malta passed three important laws that aim to encourage blockchain-based businesses to settle their operations in the country. The island is trying to attract important players in the market and allow the country to prosper economically.
For example, Binance explained that the bill ‘created a fertile environment for blockchain companies and cleared the uncertainties surrounding the market for decentralized assets.’ Binance is currently the most important crypto exchange in the market according to its trading volume in the last 24 hours. It has handled $1.45 billion dollars and the most important trading pairs are BC/USDT, EOS/USDT, and ETH/USDT – they account for 36,88% of the total trading volume of the exchange.
Binance is also known for having an important number of tokens supported. At the moment of writing this article, it has more than 350 different trading pairs paired to ETH, BNB, and BTC.