Binance
‘Is Not Authorized' to Operate in Malta, Says Country's Financial Watchdog
Malta’s financial watchdog, the
Malta Financial Services Authority (MFSA), has issued a statement claiming
leading cryptocurrency exchange Binance “is not authorized” to operate in the
country.
In the statement the regulator
cites reports in the media referring to Binance as a “Malta-based
cryptocurrency company” but noted the exchange “is not authorized by the MFSA
to operate in the cryptocurrency sphere and is therefore not subject to
regulatory oversight by the MFSA.”
Binance announced it was
opening up an office in Malta in March 2018 after
clashing with Japanese regulators, while in September 2018 it said it would
work with the Malta Stock Exchange (MSX) to offer security token trading. An
announcement from last year said the firm was providing funding for a new
crypto-friendly Maltese bank. CoinDesk details press releases sent to it list
Malta in the dateline as recently as Feb.11, 2020.
Binance’s CEO Changpeng Zhao
responded to the story on social media, saying:
“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.”
In its announcement the MFSA
said it’s assessing if Binance “has any activities in Malta which may not
fall within the realm of regulatory oversight” and reiterated that following
the passing of the Virtual Financial Assets Act of 2018, businesses that trade
or offer crypto must be fully licensed.
It’s unclear whether Binance
has offices in Malta or not.
