Binance Launches New Security Token Exchange in Malta

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The Malta Stock Exchange’s fintech and digital asset subsidiary, MSX PLC, has signed a Memorandum of Understanding (MOU) with crypto exchange Binance to jointly launch a new security token digital exchange, according to a press release on September 11.

The press release pitches the forthcoming trading platform as being poised to benefit from the Malta Stock Exchange’s “26-year track record of operating as a regulated stock exchange,” with the dynamism and international scope of Binance’s business model.

As previously reported, Binance has steadily been expanding its business presence in Malta, a country whose pro-crypto regulatory stance has earned it the moniker of “Blockchain Island.” Binance CEO Changpeng Zhao, also known as CZ, is quoted as saying:

“Malta […] has become a global hub for blockchain technology through active and transparent crypto regulations. This partnership will allow Binance and MSX to host traditional financial assets on blockchain technology through security tokens.”

The chairman of the Malta Stock Exchange, Joe Portelli, has for his part said the initiative represents a “new market opportunity [to] develop and push the boundaries of the Maltese financial sector.”

Binance first announced the opening of its office in Malta at the end of March after receiving a warning letter from Japanese financial authorities about its unregistered status.

Earlier this summer, CZ told Cointelegraph in an exclusive interview that the exchange had opened a bank account on the island, paving the way for the introduction of fiat-crypto pairs. Company representatives subsequently hinted at the exchange’s plans to open a Malta-based platform to this end.    

Binance is currently the world’s largest cryptocurrency exchange by 24-hour adjusted trading volume, seeing almost $822 million in trades on the day to press time. In July, CZ told Bloomberg he “expects” the exchange — which has also recently extended its international operations to Uganda — to reach $1 billion in profits in 2018.

Binance Labs Director Benjamin Rameau has stated that Africa is front and center of the company’s expansion strategy as it bets on a vision of the 21st century driven by the world’s youngest population gaining increased access to technology and opportunities.

Back in June Binance began actualizing its African expansion strategy when it opened Uganda’s first ever Fiat-Crypto exchange offering trading pairs with the Ugandan Shilling.

Contrarian Investment Ideas

In a detailed blog published on his Medium page, Rameau comprehensively outlines why Binance believes that the future is African, starting with a historical comparison to Asia in the 1960s – also an under-serviced continent with a poor population.

According to him, the same contrarian investment strategies that proved extremely successful as Asia kicked off an economic miracle in the face of all expectation are likely to reap similar rewards in 21st century Africa.

The post goes on to state that unlike in developed markets where it competes with a flawed existing financial system, crypto has the potential to build a completely new financial system in parts of Africa where to all intents and purposes none currently exist, such as South Sudan where only 9 percent of people over 15 years old have a bank account.

Earlier when we reported on Binance opening up in Uganda, the story noted that Ugandans’ access to financial services has grown rapidly over the past decade, driven by digital inclusion through a wide adoption of mobile money platforms. According to a World Bank news report, there has been an over 100 percent rise in the number of adult Ugandans with access to formal financial services since 2009, but the total percentage of the population with this access is still about 16 percent.

From a Binance perspective, this scenario contains the real possibility for huge growth. Essentially, an entire generation of hundreds of millions of young, technology-receptive people could come into crypto finance as their first ever experience of a structured financial system, establishing crypto as a default paradigm on the world’s largest inhabited continent, which would be game-changing for crypto perception and adoption worldwide.

Expanding on this Rameau states:

“Access to financial services for saving, borrowing and protection will provide the capital to fund entrepreneurs, provide a safety net for retirement planning and provide disaster relief. Renewed optimism about the future will arise when people are given the freedom to take on risk. Households will have fewer children and invest more per child on education when parents can pre-finance their retirements. This will form the backbone to the modernization of African economies.”

Industrialisation, Jobs, Governance, Scalability and Stability

According to Rameau, the 20th century model of industrialization which involved creating large industrial parks for manufacturing activities will be completely disrupted in a decentralized world due to the rise of technology such as 3D printing and cheap high-speed transportation, which will enable on premise, on-demand manufacture. Reducing the current industrial model to a relic will see Africa better able to compete in the global economy.

Another reason Binance sees a large future in Africa is the potential for crypto to integrate a vast continental market of more than one billion people which has a shockingly low level of intra-regional trade. Due to anachronistic, colonial-era barriers and restrictions, it is often easier and less expensive for an African country to trade with a European country than with its neighbor next door.

Crypto has the potential to quickly and comprehensively upstage the status quo using internationally recognized stores of value and watertight smart contracts amongst other blockchain-based solutions. Use of DAOs will prove to be a winning strategy for effortlessly sidestepping the legendary bureacracy involved in trading among Africa 55 countries.

The growth of the crypto economy will also create more economic opportunities for young Africans who will be placed to tap into the benefits offered by outsourcing from wealthier economies. Apart from improving the continent’s balance of trade and human development indices, the growth of economic opportunities on the continent will help to stem the flow of young Africans migrating to Europe and beyond in search of a better life, which is a major political issue in the world today.

Finally, Rameau mentions crypto’s usefulness as a stable alternative to Africa’s poorly performing national fiat currencies and as a means for sidestepping and preempting government-level malfeasance. As has already been proven in Zimbabwe, crypto can become a stable basis for an economy ravaged by high inflation.

Beyond that, however, DAOs allow small and large projects to be executed trustlessly in line with preset parameters determined by aligned interests. It is thus possible to effectively tokenize governance and make it impossible for public officials to steal funds or misuse their positions to the detriment of the public good.

According to Rameau, Binance sees itself as an African country, the same as it is Asian or European because the decentralization of DAOs makes them perfectly able to adapt to local circumstances while still being truly global.

Binance pays more than 90 percent of its staff in its platform’s native BNB tokens, as part of the company’s effort to position itself as a much bigger value proposition that just a cryptocurrency exchange.

The CEO of cryptocurrency trading platform Binance Changpeng Zhao announced a demo of the platform’s decentralized exchange in a tweet today, Aug. 9.

In a six-minute video attached to the tweet, Zhao presented a “casual, early, pre-offer”  demo of the decentralized exchange. The CEO said not “to expect too much” for now, adding that it currently does not have a graphical user interface:

“A first (rough, pre-alpha) demo of the Binance Decentralized Exchange (DEX), showing issuing, listing and trading of tokens.  All cli based, no GUI yet. A small step for #BinanceChain, a big step for Binance.”

Zhao showed three essential features of the planned exchange, those being the creation, listing, and trading of tokens. As Zhao did not disclose the launch date, it remains to be seen when the exchange will be marketed and what volumes it will be able to handle.

Decentralized exchanges are lauded as more secure than their centralized counterparts, which are more vulnerable to hacks. Decentralized platforms are set up in a manner which allows users to retain ownership of their coins using private keys. This solution reportedly prevents cryptocurrencies from being accumulated in one centralized “honeypot,” or point of attack.

Earlier this month, Binance bought Trust Wallet, an open source, anonymous, and decentralized wallet that supports Ethereum and over 20,000 different Ethereum-based tokens. Zhao then said that Binance plans to list Trust Wallet as a default wallet on its decentralized exchange.

Binance, which moved its operations to Malta this spring, is the number one crypto exchange by trade volume, according to Coinmarketcap. In July, the exchange supported plans to create a blockchain-based bank with tokenized ownership. The future “Founders Bank” will reportedly be owned by digital token investors and be based in Malta, known for its robust and transparent crypto regulatory climate.

Binance, one of the world’s two largest cryptocurrency exchanges, has just completed its first-ever acquisition.

According to TechCrunch, the Malta-based exchange operator acquired Trust Wallet, creator of the eponymous mobile Ethereum wallet that includes support for ether, as well as ERC-20 and ERC-223 tokens. Terms of the deal have not been disclosed, but Binance confirmed that it included a mixture of cash, Binance stock, and Binance tokens (BNB).

Trust Wallet is not one of the better known Ethereum wallets. It has about 50,000 downloads on Android through the Google Play store, earning a 4.6 out of 5 star rating from 1,138 reviewers. Download statistics were not immediately available from Apple’s App Store, but the wallet had a comparable rating from a similar number of reviewers. For comparison, imToken, the most popular Ethereum wallet, has more than 5 million monthly active users, most of whom are based in Asia.

“The Trust Wallet team shares the same values as us and the products are very complementary,” Binance CEO Changpeng “CZ” Zhao told the publication. “For users who like to withdraw funds into a wallet now we have a product they can use.”

Zhao said that Trust Wallet will continue to operate independently, with Binance providing some administrative and marketing support and otherwise serving as a “godfather” to the wallet service.

By offloading those functions to Binance HQ, Trust Wallet’s development team will have more time to focus on its core product offering, perhaps hastening its planned support for other cryptocurrencies including bitcoin, EOS, and NEO.

The Trust Wallet acquisition comes as Binance is actively working on building a decentralized exchange(DEX), complete with its own public blockchain. Such platforms, which have also been announced by several other major exchanges, will allow users to trade cryptocurrencies without entrusting their funds to a centralized custodian and placing them at risk of hacks and exit scams.

Zhao said that Trust Wallet will serve as one of the Binance DEX’s default wallets, though it’s not clear when the platform will go live.

Binance’s centralized exchange currently ranks as the world’s second-largest cryptocurrency trading platform, with a daily volume of $1.3 billion. Only OKEx, which, like Binance, has created its own crypto token, opened an office in blockchain-friendly Malta, and unveiled plans to create a DEX, has processed more trading volume over the past 24 hours.

The blockchain story in Malta continues unabated with yet another announcement in relation to the sector, this time on the charity front.

Binance, one of the world’s largest cryptocurrency exchanges by daily trading volume and a marked presence in Malta, has teamed up with the President’s Trust to create the Blockchain Charity Foundation.

This foundation which was announced through an MOU signing ceremony, will supposedly use the technology that underlies cryptocurrencies to ‘empower vulnerable communities and enhance transparency in charitable work.

The said Memorandum of Understanding was signed with Helen Hai, a goodwill ambassador of the United Nations Industrial Development Organization, Maltese President, H.E. Marie Louise Coleiro Preca and Dr. Michael Bianchi, a trustee of the President’s Trust at the Presidential Palace in Balzan, Malta.

Speaking during the signing of the MOU, Dr. Michael Bianchi who is also involved in the world’s first crypto bank, said that the foundation should empower socially disadvantaged people and would be changing the face of charity work in the coming years.

“We are very happy to be starting a collaboration with Blockchain Charity Foundation enabling the use of blockchain technology to provide a social and economic impact. This is a world first and will have a major impact on how social issues and charity work is done in future years.”

Binance, has been a prominent supporter of “blockchain for social good,” the mandate of its new Blockchain Charity Foundation.

Hai, who was appointed to head the foundation earlier this month, was considered to be best positioned for the job due to her experience in developmental economics. She reiterated that the Blockchain Charity Foundation would be addressing the most pressing social issues globally, in attempts to contribute towards reaching the UN Agenda 2030 and its sustainable development goals.

The key objectives of the MOU are as follows:

  • To advocate about blockchain technology and its application to address issues of sustainability in a humanitarian and environmental setting to empower, especially youth and children.
  • To improve public awareness of the comprehensive usage of blockchain and its impact on society and economy.
  • Jointly establish a work force targeting local and regional issues by implementing pilot projects and other initiatives with a blockchain technology component.

President Coleiro Preca was invited to chair the Foundation’s Senior Advisory Board. Preca, along with other heads of state, will strategically advise the management and give direction to the new charity foundation.

“I am truly pleased that we have come to the signing of this Memorandum of Understanding with the Blockchain Charity Foundation. This foundation, the first of its kind in the world, will develop humanitarian projects to effectively address the United Nations Agenda 2030 and its Sustainable Development Goals.

Through this agreement, The President’s Trust and the Blockchain Charity Foundation will aim to develop socio-economic projects in Malta, to address social challenges. Moreover, Blockchain technology will be used to increase efficiency, transparency and to measure the social impact of the respective projects.”, the President added.

The world’s largest cryptocurrency exchange by volume, Binance is reportedly planning to enter South Korea, according to Business Korea. The company is already in the process of hiring executives for the expansion into South Korea.

Binance’s expansion comes at a time when the countries lawmakers are passing legislative bills to regulate the cryptocurrency market and further legalize ICO’s under regulatory supervision.

Last year, Binance added South Korean language support for its primary cryptocurrency exchange. Last month, they announced their expansion into Africa as one of the first fiat trading cryptocurrency exchanges located in Uganda.

Korea’s primary financial regulatory authorities are looking at relaxing the cryptocurrency rules which the government asked to regulate regarding domestic cryptocurrency exchanges. Financial regulations for the country are also looking to establish new policy governing bodies centered around nurturing the fintech industry with a primary focus on blockchain technology and cryptocurrency.

Binance, the world’s second largest cryptocurrency exchange platform, is planning to create a blockchain based bank with token ownership according to Bloomberg on July 12.

The “Founders Bank” would will be based out of Malta and owned by several digital token investors. Finances already invested in a 5% stake along with other investors at a $155 million valuation.

The aim of the project is to become the world’s first decentralized community own bank. The owners of the bank would be issued a legally binding equity tokens in return for their investment. All investment capital would be handled through the blockchain based equity platform Neufund.

A license from Maltese regulators, in accordance with European financial walls, we need to be issued before launch operations. The office of the Prime Minister of Malta, Silvio Schembri, has stated he “is honored to have Malta chosen as the location for the first global community owned bank”.

The Maltese Parliament has just recently approved three DLTs (Distributed Ledger Technologies) and crypto related bills, to remain at the forefront of blockchain innovation.  These operations continue to define Malta as the “blockchain island” and further solidifies their stance as a profound cryptocurrency advocate.

 Changpeng Zhao (CZ), the founder and CEO at the world’s biggest crypto exchange Binance, has said that bitcoin is still in a positive position after its 70 percent fall since early 2018, especially considering its strong rally throughout 2017.

Crypto Market is Better in Every Way

From January to December of 2017, the price of bitcoin increased from $890 to $20,000, by more than 2150 percent. In comparison to mid-2017, the volume of bitcoin has increased by five-fold, signifying a significant surge in demand and interest towards cryptocurrencies as an emerging asset class from investors in the public market.

In an interview with Bianca Chen, a cryptocurrency researcher and reporter in Zug, Switzerland, CZ said that the cryptocurrency sector is in a better position than a year ago, in terms of infrastructure, price, volume, and mainstream interest.

“Just checked, btc price was $2500 a year ago, today $6800. Trading volume for btc was 780m a year ago, today is 3.4b. There you go,” CZ said.

In mid-2017, the cryptocurrency sector did not have any proper infrastructure in place for both retail and institutional investors. As of July, the crypto market has an institutional platform called Coinbase Custody established, with which hedge funds, academic institutions, and pensions can purchase many millions of dollars worth of digital assets like bitcoin and ether, the native cryptocurrency of the Ethereum blockchain protocol.

Major banks and financial institutions such as JPMorgan, Goldman Sachs, and Morgan Stanley have publicly disclosed their intent to facilitate the growing demand from their clients in the traditional finance sector towards cryptocurrencies by operating digital asset trading desks and exchanges in the future, once regulatory uncertainty around the crypto exchange market is cleared by the financial authorities of the US.

Most recently, at the Economic Club of New York conference, Goldman Sachs CEO Lloyd Blankfein said that if government-operated fiat currencies can dominate the financial system, consensus currencies can also emerge as dominant mediums of exchange.

More to that, Blankfein emphasized that it is arrogant to think cryptocurrencies simply cannot work because they are based on new fundamentals, principles, and philosophies.

“If you go through that fiat currency where they say this is worth what it’s worth because I, the government, says it is, why couldn’t you have a consensus currency? And so it’s not for me, I don’t do it, I own no bitcoin. Goldman Sachs as far as I know… has no bitcoin, but if it does work out, I could give you the historical path why that could have happened. I’m not in this school of saying… because it’s uncomfortable with me, because it’s unfamiliar, this can’t happen, that’s too arrogant,” Blankfein said.

So Where Does Bitcoin Go Next?

Similar to the 2014 correction, the drop in the price of bitcoin in 2018 was caused by the bubble of retail investors. The recognition of cryptocurrencies as an emerging asset class by banks, leading economies, and governments like the US, Japan, and South Korea will enable the next FOMO, fear of missing out, amongst large-scale investors and institutions.

Binance, the world’s largest cryptocurrency exchange, pledged $1 million for the victims of the floods in West Japan.

In an official post, Binance stated:

On Saturday Japan has been hit with unprecedented rainfall causing floods and landslides. According to a BBC report, More than 60 people have died and about a dozen people have been missing since. PM Shinzo Abe has ordered the evacuation of two million people in the disaster-prone areas.

Binance has urged users who’d like to donate to the cause to send ETH or ERC-20 tokens to the wallet mentioned in their official post.

They stated that all outgoing transactions would only be used for charity purposes and will be explained by Binance.

Changpeng Zhao, the founder and CEO of Binance, tweeted out calling the crypto community to contribute towards this fund. He stated that the exact logistics would be figured out shortly and his team is contacting local authorities to figure out final delivery logistics. “Given the short time, we had to keep this very simple for this time. We will build something more systematic later.” he further stated.

He also mentioned that projects which donated to the cause would get “bonus points for future listing requests” and that they might consider the donation towards the listing fees.

The Ethereum wallet mentioned has received about $90,000 worth of ETH and $1.05 Million worth of ERC-20 tokens as of writing.

Cryptocurrencies have been long used to donate for charitable causes especially due to the transparency of transactions on the public ledger. The Pineapple Fund, run by an anonymous donor, has supported over 60 charities, ranging from clean water initiatives to open source projects, by donating $55 million dollars worth of Bitcoin.

As CCJ reported earlier, Ripple has donated $29 million in XRP to DonorsChoose, a charity which helps public school teachers raise money for educational resources such as books and school supplies. Freedom of the Press Foundation, a non-profit aimed to protect journalists and whistleblowers, has recently started accepting cryptocurrencies for donations and has already recieved half a million dollars in various cryptocurrencies so far.


Binance announced on March 13th that they would be developing a public blockchain to create a new decentralized exchange. They state that “centralized and decentralized exchanges will co-exist in the near future, complementing each other”, which has inspired them to develop Binance Chain.

This new blockchain will be used for transfer and trading of all blockchain assets. They are hoping that this move will help push cryptocurrency exchanges towards a more company to community transformation.
Binance Chain will host Binance Coin, which will inherently become its native coin with its own blockchain main net.

The difference between a decentralized exchange and a centralized exchange is that decentralized exchanges do not rely on third party services to hold customer funds. Users transact with other users without the need for a central authority that possesses order books or custody over the transactions.

Decentralized exchanges tend to provide more anonymity and are touted as being a bit more difficult for hackers, however they can be less intuitive for novice traders and lack features and functionality of standard centralized exchanges.

Binances announcement comes a day after announcing their $250,000 bounty to anyone who can provide information regarding the hackers responsible for the hacking attempts on March 7th.

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