Binance has been in the eyes of the news when it comes to regulation and crackdowns by many countries of the world like China and just recently, Japan.
The financial regulatory body in Japan has accused Binance of operating in the realm of Virtual currency without a due license which it deems as illegal according to Nikkei's report
Binance which is the largest cryptocurrency exchange company in the world by trading volume was founded just last year in Hongkong.
The CEO, Zhao Changpeng has criticized the report as baseless and irresponsible on the part of the reporters. He twitted claiming that negotiation was still ongoing with the authorities and that it was too early to come out with such a report.
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However, few hours later, the CEO admitted that the Cryptocurrency exchange company has found a new home in Malta, a member of the European Union of countries.
Keycom Analysis - Will Malta turn out to be a better location for Binance?
Malta has been witnessing bee-hive activities of Fintech transactions in recent time.
The Maltese prime minister twitted recently that the small island country of less than half a million people aims to be a 'Global trailblazer' when it comes to regulating blockchain-based businesses.
According to our analysis at KEYCOM, Binance may eventually thrive better in Malta, even better than how it has done previously in Japan. This is because if Malta eventually opens its banking system for the cryptocurrency exchange company, then it will be able to offer crypto-fiat exchange instead of the crypto-to-crypto exchange it has been limited to while in Japan. This will eventually make Binance to be in the same League like Coinbase in the US with access to clients banking information. This will therefore enable easy access to withdrawal and deposit of fiat by clients.
The following reasons below may also back up the point that Malta is a better location than in Japan:
- Malta aims to become the Silicon Valley of Europe
- Malta has the smallest economy in the Eurozone and offers tax incentives for Crypto-related businesses
- Malta is a choice for Fintech companies because it provides the companies access to a single European Market
- Malta has a friendly crypto-loving government headed by its Prime Minister, Joseph Muscat
What are your thoughts about Binance's new home? Let me know in the comment section below. Cheers!