Binance and the digital asset arm of the Malta Stock Exchange (MSX PLC), has signed the Memorandum of Understanding (MoU) to blast-off a digital exchange for security tokens trading, per its press release. The MoU respects Binance's decision to continue its operations on the island which is favoring crypto climate for a long time.
Wei Zhou, the chief financial officer of Binance, the world’s largest cryptocurrency exchange by daily trading volume and Joseph Portelli, MSE chairman came on board on Tuesday after signing the MOU in the presence of Prof. Edward Scicluna, Malta’s Finance Minister as per the Binance’s press release.
MSX PLC, is an investment channel introduced by the Malta Stock Exchange (MSE) earlier this year in July 2018, to open the route for new collaborations and partnerships, and to craft new joint ventures with the notable crypto exchanges in the country.
During the launch of MSX PLC, an institutional grade security-tokens trading platform was introduced OKMSX after signing the MoU with OKEx.
Joe Portelli, Chairman, Malta Stock Exchange said:
“The exchange is thrilled about the MoU signed with Binance. Malta offers a well-regulated and pragmatic framework for the listing and trading of security tokens. We anticipate security token offerings will have a major positive impact on the global capital markets.”
While Changpeng Zhao, CEO of Binance, added: “The company was thrilled to be part of the builders of the blockchain ecosystem in Malta which has become a global haven for blockchain-based companies. Thanks to its active and transparent crypto regulations.
The new partnership will allow Binance and MSX to host traditional financial assets on blockchain technology through security tokens. We look forward to bring forth more innovations to Malta and establishing our presence in the country.”
The new trading platform will use the MSE's consistent and old track record of operating as a structured and legal stock exchange, which follows the substantial regulatory compliance, in association with Binance and it's predominant business model which aspires a global reach and influence.
After July 2018, with the passing of the three blockchain bills, the legal regulatory framework for the country's blockchain sector has founded while the crypto-friendly approach of Maltese Government has opened up several routes for various blockchain businesses in the country.
However, this is not the first time that a new digital exchange in Malta has been announced. Earlier last month, investment platform Neufund and Polish cryptocurrency exchange Bitbay also announced a similar agreement with the Malta Stock Exchange.
Prof Edward Scicluna, depicting the disruptive technology is a revolution and would change the world.
He mentioned: “Malta won’t let any opportunity pass it by, and insisting that it would have been crazy not to establish itself in this area. Highlighting that Malta is taking the prudent route.”
Although like numerous other new technologies, blockchain and cryptocurrencies are not without their risks, Scicluna acknowledged.
But this is not an excuse to let it go by and be taken up by others,” the minister said and wished that Malta would have the same success it had with the gaming sector following the establishment of the Malta Gaming Authority.