The Malta Financial Services Authority (MFSA) reported that Binance is not regulated by local authorities and is not licensed in Malta. However, Changpeng Zhao denies having a headquarters in Malta.
In response to media reports that Binance is a "Maltese crypt exchange," the regulator said that Binance had not received MFSA permission to conduct cryptographic activities, so the exchange is not subject to regulatory control by this body.
The agency also reported that it has already started checking whether Binance has any activities in Malta that may go beyond regulatory oversight. The MFSA specified that under the Virtual Financial Assets Act 2018, all Maltese firms working with digital assets must be licensed by the MFSA.
"This is a mixture of truth, panic and misunderstanding. Binance does not have a head 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 blockheads. Binance has several regulated organisations around the world which are either managed by our partners or directly by Binance. We comply with all regulatory requirements in the jurisdictions where the exchange operates," commented Changpeng Zhao, CEO of Binance.
He also added that Binance has a decentralized presence in 180 countries. In 2018, Binance transferred all its operations to Malta to avoid problems with regulators and providers of banking services. Perhaps this is why the exchange was called Malta, even though it may not have a head office in the 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.
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