Binance isn’t authorized to operate in Malta, and it’s not regulated either. That’s according to the Malta Financial Services Authority (MFSA), which delivered a public statement on February 21, refuting that Binance has ever been regulated, or indeed, granted alicense to operate in Malta.
Following media reports insinuating that Binance was a “Malta-based cryptocurrency” company, MFSA issued a strongly-worded public statement denying any authority over the exchange.
“The Malta Financial Services Authority (MFSA) reiterates that Binance is not authorised by the MFSA to operate in the cryptocurrency sphere and is therefore not subject to regulatory oversight by the MFSA,” declared the regulatory body.
Binance registered in the Cayman Islands
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As previously reported by Decrypt, Binance’s headquarters is officially registeredin the Cayman Islands, despite many believing the company resides in Malta. Speaking in an earlier interview to Decrypt, Ted Lin, Binance’s chief growth officer, said that Malta was simply Binance’s “spiritual headquarters.”
“We have offices in Malta for customer services, and some compliance people there,” Lin explained, “but it’s not the headquarters per se.”
Back in 2018, Binance moved its operations from its previous headquarters in Japan to Malta, following a falling-out with Japanese regulators. The move was warmly welcomed at the time by the then prime minister of Malta, Joseph Muscat.
Welcome to #Malta 🇲🇹 @binance. We aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies -JM @SilvioSchembrihttps://t.co/3qtAQjOpuQ
According to Binance CEO Changpeng "CZ" Zhao, the news that the exchange isn't licensed in Malta is "a mix of truth, FUD & misconception."
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There is a mix of truth, FUD & misconception. https://t.co/9rMMAmc1G9 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. https://t.co/eXCq8rO1Ue
Nevertheless, the MFSA has since launched a probe into the cryptocurrency activities of Binance in Malta.
“The Authority is however assessing if Binance has any activities in Malta which may not fall within the realm of regulatory oversight,” it said, adding that, “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.”
Decrypt has reached out to Binance for comment and will update this article if we hear back.
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