The cryptocurrency trading exchange Binance has expanded its operations once again in an alliance with a subsidiary of the Malta Stock Exchange (MSE), in an attempt to create a new securities token platform. The name of the MSE subsidiary, which is concerned with financial technology, is MSX PLC. Binance is one of the largest cryptocurrency exchanges by volume and Malta is among the most innovative and progressive countries in terms of blockchain technology.
The securities token platform and a pragmatic approach to DLT
The Memorandum of Understanding was signed on September 11th by MSE chairman Joe Portelli and Binance CFO Wei Zhou. Portelli is quoted as saying that “whether you like it or not, the technology is here to stay”, symbolic of the pragmatic attitude the region has towards the technology. He further added that security token exchanges would become the gold standard in the coming years. Full details about the new securities token platform have not yet been released.
Portelli is not the only official who endorses blockchain in the region. It is more of a nationwide ethos that permeates all sectors. According to finance minister Edward Scicluna, the risks of cryptocurrency are “not an excuse to let it go by and be taken up by others.”
In July, MSX joined with Neufund in an effort to establish a global decentralized exchange for tokenized securities and crypto-assets that are fully regulated. The concept of a regulated decentralized exchange is very interesting. If the idea of regulation was concerned more with analysis of open source code and stress testing platforms so hackers could not steal user funds, it could be more effective than simply asking exchanges to hand over all user data in a centralized system. This has already happened with exchanges such as Coinbase.
Who are Binance and the MSE?
MSX PLC is a subsidiary of the Malta Stock Exchange (the MSE), which has been in operation for over 26 years. It is one of the most significant partnerships to date between large regulated trading exchanges and securities token platforms such as Binance. The partnership should further the goals of the DLT industry, which is primarily mainstream cryptocurrency adoption at present. The innovative and inventive aspects of DLT that aim to solve worldwide problems will not come into effect for some time, and adoption has to take place first.
Binance is an Asian exchange known for having significantly less trading fees and an intuitive interface, as well as very easy KYC procedures with few limitations. It was created at a time when there were many difficulties registering with mainstream exchanges, and it launched its own Binance Coin (BNB) which was very successful. Binance has also backed the world’s first decentralized bank in Malta. Changpeng Zhao, Binance ZEO and crypto billionaire, is expecting to see a USD 1 Billion profit in 2018, despite the market rout.
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Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.