Binance has announced it will establish its headquarters in Malta, in response to the country’s progressive blockchain governance.
The cryptocurrency exchange, which is currently ranked the largest in the world due to daily trade volumes of over $1.5bn, will relocate to the island following regulatory prohibitions in Japan and Hong Kong.
“Malta is very progressive when it comes to crypto and fintech,” said Binance CEO Zhao Changpeng.
Beside the ongoing procedures to enshrine cryptocurrency in the country’s financial laws, Binance will also benefit from Malta’s five percent corporate tax rate, 77 percent lower than the EU average.
The introduction of a Virtual Currency Act and a Digital Innovation Authority, both announced in Jan- uary, will also further the cryptocurrency industry on the archipelago.
Gaming on the island is set to be most significant beneficiary of widened controls, with the 12 percent of Malta’s GDP contributed by the industry set to grow after blockchain, already a priority for innovation in the industry, receives further approval.
The announcement from Binance has also encouraged further consideration of the Maltese market by international cryptocurrency companies, including blockchain platform Tron.
“We are seriously considering invest and operate in Malta in the following weeks,” said Tron CEO Justin Sun via Twitter, adding the company “hopes to build up Blockchain Island with Malta government.”
Kris Marszalek, CEO of cryptocurrency wallet platform Monaco Card also added it was “looking into an investment in Malta following last week’s announcement by our strategic partner Binance.”
Following the announcements, Maltese Prime Minister Joseph Muscat added that despite ongoing blockchain engagement, the government would keep cryptocurrency users at the heart of legislation.
“They are not saying that they are coming to Malta because they can do what they want,” said Muscat. “We are bringing the consumer the peace of mind that there are people regulating this system.”