Binance, MSX Plc Sign MOU for Security Token Trading Platform
Binance has signed a memorandum of understanding with MSX Plc, a subsidiary of the Malta Stock Exchange, to cooperate on the creation of a security token trading platform in the Southern European island country. The move comes after U.S. exchange Bittrex announced its own Malta plans one day prior.
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New Binance Team-Up Looks to Put Malta on the Map
Malta, increasingly the redoubt of crypto companies looking for regulatory progressiveness, is set to be a first-mover in the security token trading space.
That’s per the announced MOU today, September 11th, that slots the island as home to a forthcoming security token exchange via Binance and a Malta Stock Exchange subsidiary, MSX Plc.
@MaltaStockExch pleased to announce an MOU signed, with crypto giant @binance, to set up a security token Exchange.We are becoming a leading crypto centre of excellence. @JosephMuscat_JM @edward_scicluna @SilvioSchembri @cz_binance pic.twitter.com/F3T86y7g44
— Malta Stock Exchange (@MaltaStockExch) September 11, 2018
The move follows Binance’s declaration back in March 2018 that they’d be moving some of their interests and operations to Malta. The new MOU signals not only that that said declaration is still on track, but also that its purview may even be expanding.
Exact details of the future security token exchange are scarce for now, but Binance, arguably the most popular cryptocurrency exchange in the world, has undoubtedly been tapped for their experience in facilitating large amounts of daily token trading volume.
Per the Times of Malta, Binance’s chief financial officer Wei Zhou signed the memorandum on behalf of the crypto giant, whereas Malta Stock Exchange Chairman Joseph Portelli signed for the traditional exchange.
Bittrex Opens Bittrex International, Has Malta Plans
Binance’s team-up comes on the heels of U.S. crypto exchange Bittrex announcing on September 10th the opening of Bittrex International Inc., a new corporate arm to handle Bittrex’s non-U.S. business operations.
Bittrex is powering the blockchain revolution in the U.S. and around the world. Today, we’re announcing Bittrex International, an affiliate of Bittrex, which will own & manage Bittrex’s international businesses. Details: https://t.co/JwJkD7gbVz pic.twitter.com/KPvQYa2UBD
— Bittrex (@BittrexExchange) September 10, 2018
The exchange accordingly said Bittrex Malta was in the works:
“In addition, Bittrex International is establishing Bittrex Malta Ltd., a secure, reliable and advanced digital asset platform operating in Malta and built on Bittrex’s cutting-edge trading technology. Bittrex Malta is designed to give innovative coins and tokens a streamlined approach to not only be listed on the platform, but also to continue building trust and a larger global footprint.”
The pivot is an example “regulatory arbitrage,” as bitcoiner Matt Odell commented on Twitter.
First binance, now bittrex launching offices in Malta. Governments that choose to restrict innovation with onerous regulations will lose out to those which embrace it. A website can be served to billions from (almost) anywhere in the world. https://t.co/6NwvXFWyE5
— Matt Odell (@matt_odell) September 10, 2018
With that said, and with such high-profile players in the ecosystem making Malta moves, it’s certain that other exchanges might be similarly influenced to begin leveraging some regulatory arbitrage of their own.
Take note, global legislators. If you open your doors to cryptocurrency commerce, it will come.
What’s your take? Should more nations follow Malta’s approach to crypto? Let us know in the comments below.
Images via Pixabay