This article was originally published here.
- Malta Financial Services Authority (MFSA) releases a statement stating “Binance is not authorized by the MFSA to operate” in the country
- Binance CEO Changpeng Zhao calls it a FUD, misconception and working towards becoming a true DAO
Binance CEO Changpeng Zhao says the reports of the exchange “not authorized” to operate in Malta is a “mix of truth, FUD & misconception,” because “Binance.com is not headquartered or operated in Malta.” CZ says this is just old news and FUD which has been turned into a story.
Binance “not authorized by the MFSA to operate” in Malta
CZ’s comments have been in response to the coverage of the public statement released by the Malta Financial Services Authority (MFSA). The statement says Binance is not authorized by the regulator to operate in the cryptocurrency space in the country and as such not subject to the regulatory oversight either. The regulator clarified,
“Following a report in a section of the media referring to Binance as a “Malta-based cryptocurrency” company, the Malta Financial Services Authority (MFSA) reiterates that 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.”
To offer virtual financial assets trading or offering virtual assets to the public in the country requires an MFSA license under the Virtual Financial Assets Act (CAP 590) of 2018.
Now, the regulator is assessing if the world’s leading cryptocurrency exchange has any activities in Malta which may not fall within the authority regulatory oversight.
However, as CZ has come to clarify for the first time, the exchange isn’t operating in Malta altogether.
You don’t need offices to work
Previously, there have been reports of Binance’s Shanghai office being raided and closed down by the officials to which Binance CEO Changpeng Zhao replied with, “Office and HQ are old concepts like SMS and MMS. Time is moving on.” CZ reiterated these views as he said,
“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.”
But we comply with rules in the places we have offices
The crypto exchange has a number of entities around the world that are either operated by Binance itself or its partners. But they are regulated, said CZ adding that they work closely with the regulators and comply with the rules of the places where they operate. CZ stated,
“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).”
Last year, the exchange had to stop offering its services to US citizens only to later launch another division, Binance.US with limited crypto assets that are being constantly expanded.