February 27, 2024

MFSA claims no license in Malta for Binance exchange

The Malta Financial Services Authority (MFSA) said that the Binance exchange is not regulated by local authorities and is notlicensed in Malta. However, Changpeng Zhao denies having headquarters in Malta.

In response to media reports that Binanceis a "Malta cryptocurrency exchange", the regulator said that Binance did not receive permission from MFSA to carry out cryptocurrency activities, therefore the exchange is not subject to regulatory control by this body.

The Office also reported that it has already begunCheck whether Binance has any activity in Malta that may go beyond regulatory oversight. The MFSA clarified that according to the Law on Virtual Financial Assets of 2018, all Maltese companies working with digital assets must be licensed under the MFSA.

“This is a mixture of truth, panic and misunderstanding. Binance does not have a main office in Malta, so the exchange is not managed from this state. Some people still believe that companies should have offices and headquarters. But we live in a new world of blockchain. Binance has several regulated organizations around the world that are managed by our partners or directly by Binance. We comply with all the requirements of regulators in the jurisdictions where the exchange operates, ”commented Changpeng Zhao, Binance CEO.

He also added that Binance works.decentralized in 180 countries. In 2018, Binance transferred all operations to Malta in order to avoid problems with regulators and banking service providers. Perhaps because of this, the stock exchange was called the Maltese, even though it may not have a head office in this country.

Recall that in November, Changpeng Zhao denied information about the closure of the alleged Shanghai office of the exchange and even planned to sue The Block for publishing fake news.