Binance and Malta Stock Exchange Partner to Launch Security Token Trading Platform

With increasing regulatory scrutiny, several cryptocurrency exchanges are seeking to open regulated security token markets across the globe.

This week, Binance and Malta Stock Exchange confirmed a partnership to launch a new security token trading platform, reports Malta Today.

The world's largest cryptocurrency exchange by trading volume, Binance, is set to build a regulated security token trading platform in partnership with the Malta Stock Exchange, as per a memorandum of understanding, signed Sept. 11.

To accommodate new advancements in fintech, the Malta Stock Exchange formed MSX PLC, a subsidiary platform specified for digital assets.

The new security token trading platform will be built on MSX PLC and plans to offer trading of traditional equity and security tokens side-by-side on a single interface.

Known as "Blockchain island," Malta has become a global hub for blockchain innovation due to its industry-forward regulatory framework for emerging projects in cryptocurrency and distributed ledger technology.

Malta's finance minister Edward Scicluna expressed optimism for the agreement, conceding that, while blockchain is still a developing industry, there is "Not an excuse to let it go by and be taken up by others." Scicluna has also supported blockchain projects due to their impact on increasing transparency within financial markets, deterring money laundering practices and protecting consumer rights.

Scicluna believes that a new security token market available to domestic residents is a fitting service to Malta's small, open economy.

Binance is not the only cryptocurrency exchange expanding its operations to Malta.

Earlier this month, Seattle-based Bittrex formed Bittrex Malta Ltd. as a pending partner exchange that will list a similar offering of digital assets to Maltese residents.