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Malta’s financial authority: Saying Binance is Malta-based is wrong

by Blocks99

2 months ago

Malta’s financial supervisor Malta Financial Services Authority (MFSA) has issued a statement pointing out that saying Binance is Malta-based can be misleading.

The statement denying that Binance is Malta-based says it is in response to media reports referring to Binance as a “Malta-based cryptocurrency” company. It continues to state that “Binance is not authorized by the MFSA to operate in the crypto currency sphere and is therefore not subject to regulatory oversight by the MFSA.”

CZ responds

Binance founder and CEO Changpeng Zhao, known as CZ, responded to media reports about the MFSA statement on Twitter. “There is a mix of truth, FUD & misconception. http://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.” Tweets in the Twitter thread include comments like this, by a subscriber using the handle @brucefenton, “This makes complete sense and I’m not sure why this is news. Operating and being domiciled somewhere are different things. This isn’t something unusual or unique to Binance – especially in this space. Many companies have offices & entities all over the world.” CZ’s most recent tweet has been retweeted 159 times and liked 666 times so far.

In another tweet, CZ addresses the question of domiciliation, writing, “Binance has a number of regulated legal entities around the world.”

CZ tweet on legal entities

Binance is the world’s largest crypto exchange by volume.

In the statement, Malta’s chief financial watchdog added that it is, however, assessing whether Binance has any activities in Malta that 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,” it states.

(Source: MFSA)

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