Binance to Support Blockchain-Based Community-Run Bank in Malta
Popular and established cryptocurrency exchange platform, Binance, has recently unveiled the news that a bank is in the works in Malta. The twist? It will be the first ever crypto-based physical bank run by crypto investors and related community members.
Malta is an island known for its growing support for cryptocurrencies, hence it made sense for the future bank, dubbed as “Founders Bank” to be established at the island. Based on the claims made via Bloomberg, Binance will be contributing a 5 percent stake with the inclusion of other investors. Together, the total amount invested supposedly comes out to approximately USD$155 million.
As for regulations, the Founders Bank will have to acquire the necessary licenses that comply by Malta rules. Upon getting the necessary procedures completed, the Founders Bank will be the first-ever decentralized bank to exist with only community members running it together!
It appears that most of the fund raising will be done through Neufund, a blockchain-based platform created for such purposes. For each amount invested, “legally-binding equity tokens” may be offered.
Binance shared that the Junior Minister of Financial Services of Malta, Silvio Schembri, appears to be enthusiastic about the endeavor on hand, calling it an “honor to be chosen as the location of the first global community-owned bank”.
As for how the token sale will take place, Binance pronounced that it will be conducted following German regulations with a major exchange in Europe, which still remains hidden for the time being.
The news of a decentralized community bank supposedly comes just a week after Malta opened its doors to crypto through three friendly laws. Binance believes that the efforts made by the Malta not only establishes a welcoming environment for cryptocurrencies and blockchain-based projects, but also rids one of the complications associated with categorizing such assets.
If this effort becomes a success, Founders Bank will be the first to leave a mark that proves the control should be left to the people and that cryptocurrencies are here to stay.