In a statement issued on February 21 by the Malta Financial Services Authority (MFSA), the regulatory body denied that it had ever regulated Binance. It claims the exchange has never had license to operate in the country’s crypto industry.
The authority cited reports in the media that referred to the exchange as a ‘Malta-based crypto firm’, and noted that, Binance is not authorized by the MFSA to operate in the country’s crypto sphere. Hence, the MFSA claims the exchange is therefore not subject to its regulatory oversight.
Whether the exchange has an office in Malta is still not clear. Binance has not specifically stated the location of its headquarters. Meanwhile, the exchange has frequently mentioned Malta at the start of public announcements and press releases.
According to Josh Goodbody, Binance’s director for growth and institutional business, the exchange runs a decentralized operation, hence they do not have a clear answer for that. He claims they have teams based at Binance Singapore and Binance US offices, among others, where they operate regulated businesses.
As mentioned in the statement, the MFSA is currently assessing if Binance has any activities in Malta which may not fall within the realm of regulatory oversight. It also repeated that, following the passage of the Virtual Financial Assets Act of 2018, all crypto-related businesses that base in Malta had to be fully licensed.
Featured image courtesy of MSFA via LinkedIn.