Malta Financial Regulator: Binance Not Authorized to Operate in the Cryptocurrency Sphere

TL;DR: The Malta Financial Services Authority (MFSA) recently reiterated its stance on one of the world’s biggest cryptocurrency exchanges by volume, Binance. The MFSA stated “Binance is not authorised by the MFSA to operate in the crypto currency sphere,” throwing into question, again, just where the exchange is based physically, if anywhere.

Binance Not Authorized to Operate in Malta

Prompted by “a report in a section of the media referring to Binance as a ‘Malta-based cryptocurrency’ company,” the regulator hoped to clarify the situation by insisting the exchange has no such authorization, going so far as to point out Binance “is therefore not subject to regulatory oversight by the MFSA.”

Binance and its offices have been a subject of controversy for a while, especially as exchanges deal with ever-encroaching government intervention. Not too long ago, reports surfaced Binance had boots on the ground in mainland China, causing quite a stir from the exchange itself which coyly insisted it did not. The Binance CEO protested fiercely against the idea of such offices, and blasted suggestion back then they had been raided by police.

Domiciling for Binance became so controversial, its CEO threatened a lawsuit against a crypto news outlet over such reports.

“The Authority is however assessing if Binance has any activities in Malta which may not fall within the realm of regulatory oversight,” the MFSA continued. “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,” the regulator stressed.

It is unclear what the exact consequences will be for Binance, if anything, other than having to potentially clarify its doings on the island. “There is a mix of truth, FUD & misconception,” the Binance CEO responded on Twitter. The exchange “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,” he blasted.

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