The largest cryptocurrency exchange by daily trading volume, known as Binance, has announced a partnership with the Malta Stock Exchange. The collaboration is about launching a new digital exchange specifically for security token trading.
Partnership with the MSE
The agreement between the two exchanges has been signed on Tuesday through a memorandum of understanding between the chairman of MSE, named Joseph Portelli and the chief financial officer of Binance, named Wei Zhou. Professor Edward Scicluna, the Minister for Finance of Malta, was also in attendance. Scicluna was notably absent from the blockchain, as well as a crypto scene in Malta which is often the prerogative of the energetic Junior Minister Silvio Schembri.
This new trading platform is going to leverage the 26-year track record of the stock exchange of operating as a regulated stock exchange, with the connected regulatory agreement, while building the business model and global reach of Binance.
But, this is not the first case that a new digital exchange in Malta was announced. Earlier in September, investment platform Neufund and Polish cryptocurrency exchange Bitbay also announced a similar agreement with the Malta Stock Exchange.
Greeting a press conference after the signing of the agreement, Scicluna has described the technology as a revolutionary and one who is going to change the world. He said that Malta is not going to let any opportunity pass it by, insisting that is is going to be crazy not to establish itself in this area.
A need for transparency and effective measures
Like a lot of other new technologies, blockchain and cryptocurrencies are not without their risks, Scicluna acknowledged.
Actually, the minister said that this is not an excuse to let it go by and be taken up by others, stressing that Malta has been taking the prudent route.
Scicluna also mentioned that MSX PLC, which is the fintech, as well as digital asset subsidiary of the MSE, was set up correctly for such venture. He also stated that this type of service fits well with a small open economy like Malta.
Scicluna stressed the need for transparency, as well as for effective measures to combat money laundering, and respecting consumer rights, explaining that the difference between Malta and some other jurisdictions was that Malta had recognized that new technology has the need of some new regulations.
Turning to the new digital ledger technologies legislation of Malta, Scicluna said that some of the best legal brains had commended the approach of Malta in dealing with the new sector.
The minister said that he hoped that Malta would have the same success which it had with the gaming sector following the establishment of the Malta Gaming Authority.
Security token exchanges will be common around the world
However, according to some sources, the legislative framework which was proposed for the three blockchain bills includes some onerous requirements which are going to be considerably difficult to fulfill if businesses are to take off really. The current market slump in the crypto markets is also affecting investor confidence.
Portelli also stated that the government had shown itself to be a trailblazer in the blockchain space, adding that no matter if they like it or not, the technology is here to stay.
He said that they are looking forward to seeing this exciting new market opportunity develop admonish the boundaries of the Maltese financial sector.
Portelli insisted that security token exchanges are going to become common all over the world in a few years only. On his part, Zhou thanked the Maltese government, as well as the Malta Stock Exchange for the possibility to work on such a revolutionary project.
He commented that Binance were there to offer people to complete freedom with their money and investments. Zhou said that the company was pleased with this reception which it received in Malta and the regulations put in place for the blockchain ecosystem to flourish.