Malta made it more than obvious that they have serious plans when it comes to adopting new technologies and turn into what they call the Blockchain island.
According to a report from CoinTelegraph, the small country is doing some serious progress regarding the Distributed Ledger Technology (DLT) regulation, recently announced by trading platform Binance.
Other countries sent them away!
This announcement comes after the exchange – which happens to be the largest in the world by trading volume – chose Malta as the location for their new headquarters, after receiving warnings from other countries, like Japan, China and Hong Kong.
Binance CEO Changpeng Zhao revealed the relocation plans through a tweet, sent at the end of March.
As for Malta, they welcomed the announcement through a statement made by Junior Minister for Financial Services, Digital Economy & Innovation within the Office of the Prime Minister, Silvio Schembri.
“Binance’s decision is a vote of confidence in what we’re offering as a country and as a Government in this sector, that is legal certainty in this space. During the meeting with CZ I explained our long-term vision reflected in the policy document that was launched in February, ‘Malta – A leader in DLT Regulation,” he said.
The country is also planning to welcome other countries to their blockchain paradise in the near future.
“We are not shying away but instead want to unleash the opportunities that holds by regulating the sector without stifling innovation. Ultimately our vision is to make Malta ‘The Blockchain Island’.” Mr. Schembri added.
But why this move from Binance?
The main reason why the trading platform decided to move here is that they’re planning to offer fiat-to-cryptocurrency deposits and withdrawals. These will improve its liquidity, not to mention opening their platform to new investors entering the space through fiat purchases. As you probably know, just a few platforms just offer this option, so investors are looking for hedging alternatives.
Secondly, they’re also planning to mitigate the risk attracted by their centralized system, as well as provide a decentralized and trustless solution.