The crypto exchange Binance is currently working on launching a project which is a decentralized bank bridging the crypto industry with conventional banking. Its financial institution will actually be based in Malta, of which a fundraising will be conducted under the German law. The authorities in Valletta have welcomed the initiative and are expected to win massive support from other crypto investors as well.
Decentralized, Community-Owned Bank
The world’s largest cryptocurrency exchange by trade volume called Binance is currently exploring several promising opportunities in launching a bank, of which it is expected to gain massive support from other crypto investors. These projects would also be centered on the idea of a decentralized and community-owned financial institution, according to the trading platform.
The future Founders Bank will be based in Malta, an island nation that has established itself as a crypto-friendly destination.
In its good essence, the new bank would represent an effort in bridging the crypto industry with conventional banking. How is that even possible? It is through Binance and its partners obtaining the necessary permits in Malta, where luckily, the authorities have already welcomed the initiative. And there is more to that, the bank’s board will include the government’s blockchain advisor Abdalla Kablan, as Malta Daily reported. Also, according to the said outlet, the board will be chaired by entrepreneur Michael Bianchi.
A blockchain-based equity fundraising platform called Neufund is used by Founders Bank to conduct an offer and will issue its own legally-binding equity tokens.
The news about the project has spread out after it was revealed that the trading platform is expected to accumulate a total net profit of between $500 million and $1 billionthis year. It is actually a result of increased regulatory pressures in Japan and Hong Kong, that Binance has decided to relocate in Malta, where it fully intends to set up a fiat-crypto exchange to support fiat deposits and withdrawals. The said exchange is not the only crypto company moving from Asia to the island.
Malta, along with Gibraltar and Switzerland are competing for the attention of crypto businesses from around the globe.
The expansion of Binance includes other markets too. And just last July, there was a launching of fiat-crypto trading platform in Uganda and its exchange has reached an agreement with the government of Bermuda, where it wants to set up a global compliance center.
We do expect Binance to receive approval for the project in launching a bank in Malta.