Binance not under Maltese jurisdiction, MFSA confirms

MFSA

Tista' taqra bil- Malti.

The Malta Financial Services Authority denied that cryptocurrency exchange company Binance falls under Maltese jurisdiction, two years after then-Prime Minister Joseph Muscat had heralded its move to Malta.

The company had been founded in Hong Kong in 2017, but was reported to have moved to Malta a year later. It had turned its attention to Malta after clashing with regulators in Japan, where it was seeking to set up a presence. Back then, Muscat had claimed that the move would create 200 jobs and pave the way for other operators in the sector following suit.

Later that year, Binance established a charity foundation, the Binance Charity Foundation, which donated $100,000 in cryptocurrencies to the Malta Community Chest Fund. It also signed a memorandum of understanding with the Malta Stock Exchange.

Though these developments may have given a different impression, media reports describing Binance as a “Malta-based cryptocurrency company” led the MFSA to confirm that the company never received its authorisation in the first place.

“Binance is not authorised by the MFSA to operate in the crypto currency sphere and is therefore not subject to regulatory oversight by the MFSA,” The authority said.

The authority added that it was, however, assessing if Binance had any activities in Malta “which may not fall within the realm of regulatory oversight.”