Malta Financial Regulator Says Binance Doesn’t Have Operating License, Company CEO Clarifies

Crypto exchange Binance has been shifting its base over the last few years following China’s ban on digital currencies in September 2017. Having faced a similar roadblock in Japan, the company moved its base to Malta in March 2018.

However, Binance seems to be in a fix once again! Last Friday, February 21, the Malta Financial Services Authority (MFSA) said that it hasn’t ever regulated the crypto exchange or given then a nod to operate in Malta’s blooming cryptocurrency industry.

Referring to Binance as the Malta-based crypto company, the regulator said “Binance "is not authorized by the MFSA to operate in the cryptocurrency sphere and is therefore not subject to regulatory oversight by the MFSA”.

The regulator further added: “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”.

Soon after Binance shifted its base from Japan to Malta, the Maltese Prime Minister Joseph Muscat welcomed the exchange saying that it will support Binance’s goal to become the "global trailblazers in the regulation of blockchain-based businesses.”

Later the same year in September 2018, the exchange also said that it will be working with the Malta Stock Exchange (MSX) to offer security token offering. However, things don’t seemed to have materialized in this direction so far.

Soon after the crypto market was abuzz with respect to the lack of clarity on Binance’s Malta operations, the exchange CEO Changpeng Zhao took it to his Twitter handle to clarify this matter.

He wrote: “There is a mix of truth, FUD & misconception. Binance 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”.

Zhao further added: "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.”