The CEO of cryptocurrency exchange Binance is responding to the Malta Financial Services Authority (MFSA), which recently revealed that the leading cryptocurrency exchange is not licensed to operate in the country.
In addition, the agency says that Binance is not regulated by the country’s financial watchdog.
“The Malta Financial Services Authority (MFSA) reiterates that Binance is not authorized by the MFSA to operate in the cryptocurrency sphere and is therefore not subject to regulatory oversight by the MFSA.”
Binance released a post in March of 2018 stating its plans to set up shop and invest in Malta.
“?Binance, the world’s largest cryptocurrency exchange by traded value, is setting up operations in Malta. After reviewing several different locations, the company decided to invest in the European nation due to its existing pro-blockchain legislation and the stability that it offers financial technology companies through its regulatory framework. With plans to substantially grow its operations, there are plans to eventually hire up to 200 people to assist their expansion.”
Binance CEO Changpeng “CZ” Zhao says the news is creating unnecessary fear, uncertainty and doubt about the exchange. In a series of tweets, Zhao confirms Binance does not operate in Malta and says the release from the MFSA is old news.
“There is a mix of truth, FUD and misconception. Binance is not headquartered or operated in Malta. This is old news and has always been the case, hence there is quite a bit of FUD turning this into a breaking story.”
Zhao says the company “has a number of regulated entities around the world” and works closely with regulators to ensure compliance wherever the site operates.
He also addresses the notion of needing to identify a headquarters.
“There are misconceptions some people have on how the world must work a certain way, you must have offices, HQ, etc. But there is a new world with blockchain now. Again, some of our community understands this, and some don’t. Hence, lots of confusion.
Binance has a number of regulated entities around the world, either operated by our partners or by Binance.com directly. We work closely with regulators and comply with the rules in the places where we operate.
Binance.com has always operated in a decentralized manner as we reach out to our users across more than 180 nations worldwide. As well as pushing the envelope in experimenting how to become a true DAO (decentralized autonomous organization).”
Featured Image: Shutterstock/ymcgraphic
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