When it comes to cryptocurrency exchanges, Binance tops the list. Launched less than 12 months ago, it’s officially the largest exchange in the world, with it being the very first crypto exchange to reach a $10,000,000,000 trading volume. For all of Binance’s success – and there has been plenty of that to report – the company has struggled to find a home base, but that now looks set to change. Much like BitStarz, Binance is heading to Malta, as it looks for a fresh start in the Mediterranean.
Looking for a permanent home
There is no denying the runaway success that Binance has been able to achieve, but regulation changes across the world have hampered the company’s ability to find a lasting home. Founded in Hong Kong, it appears that its stay in and around Chinese shores will be short-lived. Regulators in both China and the US have been hindering and impeding cryptocurrency exchanges since the turn of the year, which has effectively forced exchanges to operate on the move. Binance had what it thought was a permanent base in Japan, but with licensing plans stalling, it made the tough decision to remove its staff to avoid any further issues with local regulators.
Moving to the Mediterranean
For many companies in the fintech space, Malta is proving to be a very tempting place to form roots. Seeing its potential, Bianace is moving forward with a relocation to the Mediterranean island. According to reports, Binance will attempt to start a “fiat-to-crypto exchange” in Malta, with it being close to brokering a deal with local banks that can provide withdrawal and deposit access. Speaking on the move and what it will mean for Binance, Changpeng Zhoa (Binance CEO) said, “Malta is very progressive when it comes to crypto and fintech, we are very confident we can announce a banking partnership there soon.”
Feeling the Asian heat
Hong Kong is officially Binance’s home, but the country is in something of a gray area when it comes to cryptocurrency adoption. No less than seven exchanges were given official warnings from the Securities and Futures Commission, as firms were told not to trade security defined digital assets under Hong Kong law. Zhao has revealed that talks with Hong Kong authorities remaining ongoing but did not hold out much hope for a resolution anytime soon. When this news is partnered with the official warning it received from Japan’s Financial Services Agency for operating without approval, Binance was left with little choice but to look for a new home.
Jumping on the trend
Moving to Malta is a common trend amongst fintech firms, as the country is an undeniable hub for digital currency ventures. The government has become increasingly welcoming to Bitcoin-based brands, with various public consultations taking place regarding coin sales, cryptocurrency exchanges, and digital currencies. Plans are already in place for the Malta Digital Innovation Authority, which will work to regulate and certify blockchain-focused businesses. The new organization will also create a framework to oversee ICOs, helping to further bring the “Wild West” of the cryptocurrency world under control.
Blazing a trail
Binance’s decision to make Malta home has certainly been warmly received. Joseph Muscat – Malta’s Prime Minister – tweeted on Friday, “Welcome to #Malta @binance”. He also spoke on the country’s intention to become a crypto hotbed, “We aim to be the global trailblazers in the regulation of blockchain-based businesses.” Zhao has revealed that he’s been invited as a guest of the Maltese government to review an upcoming bill that was favorable to crypto business operations. Zhao’s involvement in governmental decision-making stands as proof of Binance’s power, with the company having big plans ahead once it lands in Malta. Reports suggest that it’s planning on launching a decentralized exchange during the months to come, with no less than 10 teams currently working on it. While Zhao has stated that the technology isn’t quick enough as of yet to replace the company’s existing centralized exchange, it’s development does stand for something exciting.
Binance makes Malta home!
Malta has become home to the world’s leading Bitcoin-based businesses, as the country remains focused on welcoming and helping further new and emerging technology. BitStarz arrived in the Mediterranean four years ago and hasn’t looked back. For that reason, we certainly think that Binance has made the perfect choice in setting up a base on the sunny Isle of Malta!