MSX PLC, the digital asset arm of the Malta Stock Exchange, has signed a Memorandum of Understanding (MoU) with Binance to launch a digital exchange for trading security tokens, per its press release. The MoU follows Binance’s decision to continue its operations on the island in recognition of the country’s favorable crypto climate.
Earlier in July 2018, the Malta Stock Exchange (MSE) launched the MSX PLC as an investment vehicle that seeks partnership with leading crypto exchanges to create joint ventures in the country. At the time of the launch, an MoU was signed with OKEx to launch an institutional grade security-tokens trading platform dubbed OKMSX.
Speaking with Bitcoin Magazine, Chairman of the Malta Stock Exchange Joe Portelli said the exchange is thrilled about the MoU signed with Binance.
“Both parties believe Malta offers a well-regulated and pragmatic framework for the listing and trading of security tokens. We anticipate security token offerings will have a major positive impact on the global capital markets.”
The new security tokens platform will leverage the MSE’s track record and extensive experience in “regulatory compliance and client due diligence” in collaboration with Binance’s substantial international reach.
Changpeng Zhao, CEO of Binance, said his company was thrilled to be part of the builders of the “blockchain ecosystem in Malta” which has become a global hub for blockchain-based companies thanks to its “active and transparent crypto regulations.”
“This partnership will allow Binance and MSX to host traditional financial assets on blockchain technology through security tokens. We look forward to bringing more innovations to Malta and further establishing our presence here,” he added.
Malta has long been a crypto-friendly environment which is why many blockchain businesses like Binance and OKEx set up shop there. In July 2018, the Maltese Parliament passed three blockchain bills into law which established a regulatory framework for the country’s blockchain sector.
This article originally appeared on Bitcoin Magazine.