Binance Malta registration myth clarified by regulatory authorities

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Binance Malta registration has come under doubt after the country’s regulatory body said that the exchange is not licensed under appropriate laws. The Malta Financial Services Authority (MFSA) press release clearly mentions that the Binance Malta registration license never actually happened.

The cryptocurrency exchange, Binance, was earlier believed to be under Malta’s jurisdiction. The shocking revelation is that Binance was never issued regulatory approval, and it was never a licensed crypto entity in Malta. The news of Binance Malta registration can have serious implications for the company.

Binance Malta registration never actually happened

MFSA press release has been announced in response to various news articles which mentioned that Binance is registered under Malta authorities. In clarification, MFSA states that no such license has been issued to the cryptocurrency exchange under the country’s laws. Therefore, it does not regulate or oversee the company’s operations. It goes on to add that Malta crypto businesses must be licensed under the 2018 Virtual Financial Assets Act.

Earlier, Binance claimed Japan as their country of registration. They received a warning from Japanese authorities in 2018 as the claim was not true. Following this episode, the Binance CEO Changpeng Zhao said that the exchange is considering moving its operations to Malta as the country offered a positive and progressive ecosystem for cryptocurrencies. He even claimed that the government of Malta invited him for consultation on a crypto bill.

Where exactly is Binance registered?

In 2019, Binance offices were shut down in Shanghai following a raid by the Chinese authorities. The exchange brushed it aside saying that raid on one office in a country will not affect their decentralized operations that are run from multiple locations around the world. Zhao even downplayed the role of physical office addresses and said there’s no need to have one. He compared physical offices to SMS technology.

Recent statements from Binance mention that the exchange complies with local regulations. Multiple news agencies and crypto enthusiasts are starting to notice that Binance has never truly revealed the location of its headquarters. Now, with Binance Malta registration in doubt, the company removed many references to Malta in their official documentation.

Featured Image by Pixabay

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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