Availing loans could get easier for Maltese blockchain companies
Looks like Malta could get a blockchain bank that will serve the crypto industry! Maltese-based RnF Finance Limited has applied for a credit institution license with the Malta Financial Services Authority, according to report. The bank will is ready to start its financial operations next year, after being granted regulatory approval. RnF Finance Limited is backed by OKEx, one of the largest cryptocurrency exchanges.
Upon initiation, the institution plans to massively invest in blockchain technology and artificial intelligence during the beginning of the company. This will allow the banks to carry out a “risk-based compliance assessment” before accepting clients.
RnF Limited is headed by Roderick Psaila, the former CEO of Agribank, a credit institution based in Malta. “The Bank shall engage into four main business streams: Offer banking services to corporates; Lending; Private Banking and Wealth Management. We are targeting big corporates and private clients and the mentality would be that no industries are vetoed beforehand but each application will be treated on a case by case basis,” said Psaila.
The new credit institution will make sure that crypto companies get equal chances of availing credit like other companies, if they complete the due diligence assessment successfully, added Psaila.
“We are delighted to partner with Roderick and his team of bankers in this exciting project in Malta, and are excited to be involved in this new banking venture on Blockchain Island,” said Ms. Tian Ying, Founding Partner of OKEx.
“Malta has been a first mover to comprehensively regulate the blockchain industry, and we are excited to be involved in this new banking venture with RnF Finance Limited. Malta’s sound regulatory framework and support for new industries will cultivate many more opportunities on Blockchain Island,” indicated Tim Byun, the chief risk officer at OKEx.
At a time when governments worldwide have either adopted a cautious approach or ruled out the legitimacy of cryptocurrencies, Malta has become a hub for blockchain technology under the leadership of Prime Minister Joseph Muscat.
The European island in the Mediterranean Sea has become the first country to establish a regulatory framework for virtual currencies. Many companies in the blockchain space are looking to set up shop in Malta. The most notable move was crypto exchange giant Binance opening an office and even setting up a bank account in the country.
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