The Maltese government is gradually building a global market for cryptocurrencies as it continues to assert itself as the world’s blockchain island with crypto-friendly regulations. Thanks to such accommodating legislation, cryptocurrency companies like Binance and OKEx have flocked to the country to build out their services.
The partnership was formalized in the form of a Memorandum of Understanding (MoU) signed in Valletta, Malta on July 19, 2018. Both parties will endeavour to finalize a Joint Venture to be established by the third quarter 2018.
Calling the project a “pioneer in digital finance,” Joseph Portelli, chairman of the Malta Stock Exchange, said:
“We are delighted to welcome Neufund as our key partner in building a blockchain-based exchange that is fully integrated with established financial markets.”
The new exchange will operate under the name OKMSX and will leverage OKEx’s digital asset operations and security expertise, along with the Malta Stock Exchange’s 26-year track record of operating as a regulated stock exchange with extensive experience in regulatory compliance and client due diligence.
OKMSX will be well positioned to develop an institutional grade security-tokens trading platform, according to OKEx. This new platform will launch in the first quarter of 2019, catering to global clients.
MSX has also signed an agreement with Fifth Force, the operator of the Berlin-based Neufund platform that has support for “any type of security or financial product to be issued as a token on blockchain creating Equity Token Offerings,” says the press release.
The Malta Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act, and the Virtual Financial Asset Act were passed on third and final reading to cement Malta’s position as a crypto and blockchain hub.
Silvio Schembri, Member of Parliament and the Junior Minister within the Office of the Prime Minister for Financial Services, Digital Economy and Innovation, said
“Today, Malta opened up a way for legally binding listing and trading of tokenized securities. We are proud of Malta Stock Exchange to enter a partnership with a worldwide leader in primary offerings on blockchain such as OKEx. I look forward to the fruitful collaboration in the future.”
Malta, with its multitude of blockchain and crypto businesses, has become known as the “blockchain island” and the world’s leader for legislative regulations on blockchain and crypto industry.
Earlier this month, Malta’s parliaments had passed three crypto and blockchain-related bills into law, establishing a regulatory framework for blockchain technology.