The world’s largest cryptocurrency exchange, Binance, is considering launching its own decentralized, jointly owned banking institution. The news was announced in a statement issued by the same company last week. The “Founders Bank” project will be based in Malta, as the small island has positioned itself as one of the most crypto- friendly countries in the world.
According to Bloomberg, Binance has chosen to take a 5% stake along with other anchor investors. This cooperation amounts to approximately 155 million dollars. In simpler terms, the project reflects an effort to unite and relate cryptocurrencies market with conventional banking.
To achieve this, the cryptocurrency exchange platform must obtain the corresponding permits on the island of Malta, but it appears that this will not be a problem since the authorities have taken this initiative with considerable enthusiasm.
The biggest drawback for the Binance own bank would be the European Central Bank (ECB)
Malta’s Deputy Minister of Financial Services, Silvio Schembri, noted with delight the fact that his nation had been chosen as the location for the “first community-owned bank in the world.”
Now, since Malta is a Member State of the European Union, it seems that the most challenging thing will be to get approval from the European Central Bank (ECB). As we all know by now, the ECB has been against some initiatives involving cryptocurrencies, such as the idea of a crypto-funded state.
Binance’s “Founders Bank” will conduct its fundraising offering through the Neufund blockchain-based platform and issue its own legally binding capital tokens. According to Binance, the sales will be carried out under German regulations in collaboration with one of the leading stock exchanges in Europe.
It is no coincidence that Malta is hosting this project
Binance was forced to migrate from Japan and Hong Kong due to strict regulatory measures. Being now located in Malta, it is no surprise that this is the location for these and other initiatives the world’s leading cryptocurrency exchange platform will deploy.
Malta, on the other hand, a member of the European Union, is competing with destinations like Gibraltar and Switzerland for the attention of cryptocurrency-related firms around the world.
Binance’s decision to launch its own bank, “Founders Bank,” to blend cryptocurrencies with traditional banking comes as a counter-attack against the banking institutions which consider cryptos as a threat to fiat money.
Source : ICOnow