Maltese cryptocurrency-based project Founders Bank continues to regard itself as a bank despite the fact that it has not yet received a license from local authorities.
The Times of Malta reported on Saturday that Founders Bank is still awaiting authorization from the country’s regulatory body. Despite this fact, the financial institution continues to promote itself as a decentralized crypto bank.
Founders Bank is a project supported by the world’s largest cryptocurrency exchange by traded volume- Binance. On 12 June, the institution has submitted an application to obtain permission to operate on the territory of the country as a bank. The business is describing itself as a decentralized bank given that it intends to operate for the crypto community.
It intends to release an ICO
Founders Bank plans to release an ICO and a native cryptocurrency. Anyone who will own the company’s crypto asset will benefit from a share in the future bank. The launch of the bank is scheduled for the first six months of 2019.
“Once licensed, Founders Bank will become the first stable and high tech banking solution not only focused on founders, but also owned by them, bridging the gap between traditional financial world and innovative crypto companies,” the project explained in a blog post last month.
It is reported that the Malta Financial Services Authority (MFSA) is unaware that Founders Bank is already considering itself a bank. A representative of the regulatory watchdog commented:
“What we are aware of are media articles mentioning their plans to set up a blockchain-based bank servicing technology and cryptocurrency businesses. Any applications for this type of bank will have to follow all the MFSA’s on-boarding procedure.”
Asked about the fact that Founders Bank is being promoted as a financial institution in the online environment, an official said the MFSA did not impose any restrictions regarding this.
In conformance with Malta’s Banking Act, “no person other than a credit institution with a current licence may use the word “bank” or any of its derivatives or other words as may indicate or purport to indicate the carrying on of the business of banking in any language in the description or title under which such person is carrying on business, or make any such use on any letter paper, in any notice or advertisement, or in any other similar manner”.