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The famous cryptocurrency exchange Binance is neither regulated nor authorized to operate in Malta, the country’s financial watchdog said on Friday, February 21.
The Malta Financial Service Authority (MFSA) made the announcement in public statement published on its website. The statement citing reports in the media that referred to Binance as a Malta-based cryptocurrency exchange, the financial regulator made it clear that was not the case. As Binance is not regulated, it does not comes under the MFSA jurisdictions. The statement reads:
“Following a report in a section of the media referring to Binance as a “Malta-based cryptocurrency” company, the Malta Financial Services Authority (MFSA) reiterates that Binance is not authorised by the MFSA to operate in the crypto currency sphere and is therefore not subject to regulatory oversight by the MFSA.
The Authority is however assessing if Binance has any activities in Malta which may not fall within the realm of regulatory oversight. Admission of virtual financial assets to trading and/or for offering virtual financial assets to the public in and from Malta requires an MFSA licence in terms of the Virtual Financial Assets Act (CAP 590) of 2018.”
Binance announced the opening of its office in Malta in March of 2018. Everyone on media was citing Binance is Malta-based Cryptocurrency exchange but in actual, Binance never made the official announcement that it was headquartered in Malta. It is also not clear if Binance still has an office in Malta, according to some crypto news media.
The CEO of the Binance Changpeng Zhao, responding to the news, said:
“There is a mix of truth, FUD & misconception. Binance.com is not headquartered or operated in Malta. This is old news & has always been the case, hence there is quite a bit of FUD turning this into a breaking story. The community’s comments show that understanding.”
He did not talk about the headquarter of Binance but said that with the invention of blockchain technology, there is no need maintain central offices and headquarters.
He further said:
“Binance has a number of regulated entities around the world, either operated by our partners or by Binance directly. We work closely with regulators and comply with the rules in the places where we operate.”
