binance exchange not authorized to operate in malta

Binance Exchange Not Authorized to Operate in Malta

What we think is not always the actual case. Yesterday, 21st February 2020, Malta’s financial regulator, the Malta Financial Services Authority (MFSA), stated that Binance Exchange Not Authorized to Operate in Malta. In the statement, the MFSA cites reports in the media referring to Binance as “Malta-based cryptocurrency company”. Moreover, the MFSA revealed that Binance Exchange Not Authorized to Operate in Malta.

World’s Biggest Cryptocurrency Exchange

Binance is the world’s largest cryptocurrency exchange, and it was opening an office in Malta in March 2018, this was an announcement. Shortly after this news, it received a warning to stop operating in the country without official approval. Interestingly, Malta’s Prime Minister, Joseph Muscat, welcome the cryptocurrency exchange. Soon after, due to the pro-crypto status, Malta was starting to know as a “Blockchain Island”. But it’s not clear whether Binance still has offices in Malta. At the same time, in the recent publication on February 11, 2020, they had mentioned Malta as one of their offices. But officially, Binance hasn’t revealed where its headquarters are located. 

Binance CEO Changpeng Zhao’s Reply

Notably, for a business entity to the issue, sell, financial assets to the public in and from Malta. It requires an MFSA license in terms of the Maltese Virtual Financial Assets Act of 2018. In response, Binance CEO, Changpeng Zhao, addressed reports on the MFSA’s statement. And replied on his twitter that the news has a fair “mix of truth, FUD & misconception.” He clarified that Binance is neither headquartered nor operated in Malta. He also added FUD like this is not something entirely new as it’s “old news.”

 

binance exchange not authorized to operate in malta

                                                                        Source: Twitter

binance exchange not authorized to operate in malta

                                                                  Source: Twitter

Closing Frame

The MFSA stated in that case if the cryptocurrency exchange has activities in Malta that “may not fall within the realm of regulatory oversight.” The regulator also added that since the passing of the Virtual Financial Assets Act of 2018. Businesses in Malta trading or offering cryptocurrencies have to be fully licensed.