Malta has recently announced itself as a leader within the FinTech industry, providing an ideal jurisdiction for start-ups and companies within the crypto-currency sector to set up shop in Malta. As a result of this, Binance, the largest company in the crypto-currency industry announced its relocation to Malta on the 23rd March 2018.
Binance’s relocation to Malta
It has been reported by Bloomberg that the Company, which was initially founded last year in Hong Kong, was facing trouble with the authorities since they were making it difficult for such companies to operate on a permanent base. The company held that despite discussions with the authorities in Hong Kong, there was lack of certainty on the outcome. With Malta becoming a hub for digital-assets ventures, Chief Executive Officer Zhao Chanpeng decided to open an office in Malta, highlighting that “Malta is very progressive when it comes to crypto and fintech”.
Since its year in operation, the company has been quite successful since it has carried out financial transactions which amount to more than €1.5 billion daily, serving approximately six million customers. Upon deciding to relocate to Malta, the Government of Malta invited Zhao to review the bill which is being proposed to regulate crypto-currency exchanges in such a way that would be encouraged.
TVM has reported that as a result of Binance’s relocation to Malta, there will be the creation of 200 jobs for full time-employees in Malta. Maltese Prime Minister Joseph Muscat proved to be keen on this relocation, promoting Malta as “the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies”. Hon Silvio Schembri, the Parliamentary Secretary for Financial Services, Digital Economy & Innovation in Malta also held that the framework which is being introduced in Malta to invite development within the cryptocurrency sector will make Malta ‘The Blockchain Island’.
What is to come
It has been noticed that Malta’s pro-blockchain legislation has made it a leader within this sector in Europe and around the world. As was similarly done a decade and a half ago with the iGaming Industry, Malta is making itself a pioneer in DLT and virtual currency regulations. As a result of such unique opportunities, Prime Minister Muscat holds that employees will be attracted to work and train within this sector in Malta.
Our FinTech Practice
Chetcuti Cauchi welcomes any innovations within the financial sector and will seek to provide our clients who wish to venture into fusing traditional legal notions with such technologies with expert advice on how to do so.
If you would like to set up a meeting with our financial services team in order to determine how to explore Malta’s full potential within the FinTech industry, contact us on [email protected]