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Binance News: The exchange isn’t Authorized to operate in Malta, MFSA says

Binance the global cryptocurrency exchange is indeed performing high in numbers in such a short period since its launch. No doubt, the cryptocurrency trading platform is providing its services globally in a true and secure form in more than 100 cryptocurrencies.  However, the formal location of the company is still not known to the public officially. 

Today, the Malta Financial Services Authority mentioned in a statement said that the Binance, the cryptocurrency exchange hasn’t received any authorization to operate in the cryptocurrency sphere in Malta and doesn’t fall under its jurisdiction. Therefore, “Binance is not subject to regulatory oversight by the MFSA.”  

The public statement announced on the watchdog’s website stating that “in and from Malta to operate, trade, and to offer virtual financial assets to the public, the MFSA license is must” which is provided under the “Virtual Financial Assets Act (CAP 590) of 2018.”

Binance Under Assessment By MFSA

The MFSA’s statement follows after noticing various media reports which refer to Binance as a “Malta-based cryptocurrency exchange,” which is, in reality, has never received authorization from the regulators to operate in the country. 

Though the regulators haven’t mentioned about the violation of any activities against Binance, still, as per the displayed information, Binance has to go through the complete assessment from the authorities on its activities.

It is cited that, “The Authority is, however, assessing if Binance has any activities in Malta which may not fall within the realm of regulatory oversight.”

On November 1, 2019, the MFSA broadcasted a message on its website mentioning that there are 34 prospective VFA service providers submitted a letter of intent to obtain the authorization under VFA Act.

While it is not sure but there is a strong possibility that Binance must have also tendered the letter of intent to obtain the MFSA authorization, under its 2018 VFA (Virtual Financial Asset) Act, like many other cryptocurrencies/virtual currency/digital asset/blockchain businesses.

Where is Binance’s Actual Existence

Binance is the largest cryptocurrency exchange by market capitalization founded in 2017 in China. However, during September 2017, in the wake of the Chinese government crypto trading ban, the company had to move its servers and headquarters from China to Japan following other crypto trading platforms like OKEx.  

In March 2018, subsequently, following the stringent rules and regulations in Japan and to provide a sound regulatory framework for its blockchain businesses and digital asset exchange, Binance had decided to move its operations from Hongkong to Malta.

On this move, the Prime Minister of Malta, Joseph Muscat had expressed his enthusiasm on Twitter and after that Bloomberg reported on 23rd March 2018. 

Following this announcement during September 2018, Binance’s CEO Chengpeng Zhao (CZ), announced that Binance had signed the memorandum of understanding with a fintech arm of the Malta Stock Exchange intending to develop a joint platform for launching a trading security tokens.

Earlier, CZ also announced that he was invited to Malta by the Maltese government to look at an upcoming bill favoring crypto businesses under the Malta Digital Innovation Authority which the government had launched in February 2018. The news reported by Bloomberg on March 23, 2018.

CZ said that “Malta is very progressive when it comes to crypto and fintech.”

On the MFSA’s recent statement, Binance is yet to publish any updates. KonPost will soon update this report as and when any news comes from the Binance cryptocurrency exchange.

Image by Paul Brennan from Pixabay