One of the world’s most outstanding cyber-money bourses by trading value, Binance, appears to be among investors of a decentralized bank which is yet to be established. Currently, the exchange is looking for the means to pave the way for it.
The Bank, Backed Up By Crypto-Investors
Malta is known to be a crypto-friendly island country in Southern Europe. Now it is going to embrace the future Founders Bank, a decentralized financial institution. According to the Bloomberg’s report, Binance announced it had invested the 5% fraction of the bank, whereas in general the establishment is backed up with $155-million from other core investors.
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The confrontation between the digital money niche and the traditional banking system as old as the hills, yet the latest move by Binance is one of a few efforts which has tried to bring two industries together. Interestingly, the exchange’s head Changpeng Zhao prior to the announcement notified that Binance was expecting revenue of $500 million-$1 billion already this year.
As Binance has stated, it, as well as other supporters of the Maltese bank-startup, aspires to make out of the project the first decentralized bank in the world, which belongs to the community. However, the only obstacle is for this bank to acquire all needed permits. One of the regulators that the project will have to meet is the anti-money-laundering one.
The potential bank is also going to carry out its offerings via Neufund – an equity fundraising platform based on the blockchain. In fact, Founders Bank is going to own “legally-binding equity tokens.” That wouldn’t be possible unless the bank gets a permit from local Maltese regulators as well as approbation from the EU Central Bank.
The approach of the latter might be different in viewing the decentralized ban from anti-money-laundering regulators, so it is quite a challenge for Founders Bank.
New Laws in Malta
Binance made a statement just a week after Malta adopted three laws which are to support the launch of blockchain-based companies in the country. The exchange emphasized that these laws create prolific conditions for companies like it.
The trading venue also made it clear that the bank’s token sale would be carried out under German laws. For that, it is going to cooperate with a significant stock exchange in Europe. However, it didn’t name it.
In the meantime, in the ministry for financial services of Malta, the project of a decentralized bank is considered as “honor,” as it is said in Binance’s statement.