October 19, 2018

Binance Wants A Bank

Several countries are in the process of experimenting with Cryptocurrencies as an alternative to fiat currencies, and one country in particular, Malta, has passed brand new laws hoping to garner more Cryptocurrency investment to the region. These three bills were pushed forward by the Maltese authorities in order to attract some of the bigger players within the Cryptocurrency industry towards their economies and judging by the latest news it is evidently working. Let’s take a look down the rabbit hole.

A Peek Into Malta

Malta has been receiving a lot of attention recently from much of the world due to the fact that Malta has achieved the largest number of all Initial Coin Offering or ICO tokens within the world. What is the reason behind this exponential increase in trading? Binance, one of the most influential Cryptocurrency traders in the world moved their operations to Malta because of how favorable the new laws are to Crypto start-ups. But Binance is not yet satisfied with its current status or earnings, instead it has moved its sights onto a new and even more important pilot project for much of the world.

The Big Idea

Binance would like to use Malta to begin the very first bank that would be entirely owned by external Cryptocurrency shareholders, as reported right out of the pages of Bloomberg. This bank will be fully owned by the community, the complete antithesis to the current financial system. Binance is already in the process of securing buy-in from individuals throughout the world, giving the project the name of ‘Founders Bank’. At present the project has managed to secure a total of $133 million which is akin to approximately 5% of the total investment shares available within the business.

Binance will begin to sell the tokens for this project on the Neufund platform which is operated out of Berlin and will be governed under all necessary German legislation. Currently, there is no word as to whether or not the authorities in Malta will give the go ahead to Binance to proceed with this new type of financial institution, yet the CEO of Binance Changpeng Zhao is optimistic. Zhao believes that Malta is living in an equilibrium of Cryptocurrency and formal finance structures; therefore it is the most conducive environment to creating a brand new kind of finance structure. Zhao maintains the belief that the bank will be able to generate a profit of anywhere between $500 million and $1 billion by the end of 2018.

Final Thoughts On The Idea

Malta’s new laws are not just friendly to the owners of Crypto-companies though; the updated legislation helps to ensure that if a person would like to acquire ICO’s that they would be far more protected in their investment than before. When asked what their thoughts were on the prospect of the first community owned bank opening in Malta, a Junior Officer within the Office of the Prime Minister informed the media that they were extremely proud to have this opportunity. As many more Crypto companies attempt to join Cryptocurrencies into traditional financial sectors, many more countries will institute more conducive legislation, currently we are just excited for the new bank.

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