The cryptocurrency exchange Binance moves to Malta. What led to the company’s move to the Mediterranean? Find out what Binance CEO, Changpeng Zhao has to say about the move. Also, is the recent warning of the Japanese FSA true or false?
26 March, AtoZForex – The financial regulators around the globe have been taking action against cryptocurrency exchanges since 2017. This has made it difficult for exchanges like Binance to find a permanent location for operations. Binance was founded last year in Hong Kong and in a recent interview, their CEO, Changpeng Zhao revealed the firm’s plans to open an office in Malta.
In the interview, Zhao also commented on the recent media coverage of the news outlet Nikkei, which published an article on March 22nd, saying that the Japanese Financial Services Agency issued a warning against Binance. The article on Nikkei said that Binance has been operating in Japan without a license. Is this news true or false?
Twitter confirms: Cryptocurrency Exchange Binance Moves To Malta
According to Bloomberg, the CEO of Binance has said in an interview that the cryptocurrency exchange is planning to open a Maltese office, without indicating a timeframe. However, it was reported that Binance will soon launch a fiat-to-crypto exchange in Malta, whilst they are trying to secure a deal with local banks at the moment. Responding to this news, the Prime Minister of Malta, Joseph Muscat sent a tweet to Binance and welcomed the crypto exchange to Malta.
Welcome to #Malta ?? @binance. We aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies -JM @SilvioSchembri https://t.co/3qtAQjOpuQ
— Joseph Muscat (@JosephMuscat_JM) 23 March 2018
In the chain of events, the CEO of Binance retweeted the following:
Honored, sir! Part of my original quote to Bloomberg that was left out of the article. “Malta is very progressive when it comes to crypto and fintech. We think it is a good place for other crypto businesses to look into as well.” https://t.co/cBZJnEgUGk
— CZ (@cz_binance) 23 March 2018
Japanese regulator FSA’s warning against Binance, true or false?
The media outlet Nikkei, reported on Friday that the Japanese regulator FSA will issue a warning against Binance, for operating within Japan without any license. This news came out prior to the official warning of the FSA on Binance was published, which created confusion in the market. Having no official confirmation of the regulator, the CEO of Binance sent out a tweet on his account @CZ, that this is “irresponsible journalism”;
Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them.
— CZ (@cz_binance) 22 March 2018
However, a day later, the Japanese regulator FSA has publicly confirmed the warning against Binance. The FSA revealed that Binance is not licensed with the local regulator. Meanwhile, the crypto exchange has been expanding its operations to Japan, according to the news outlet Nikkei. In response to the official letter of the FSA, the CEO of Binance sent out the following tweet;
We received a simple letter from JFSA about an hour ago. Our lawyers called JFSA immediately, and will find a solution. Protecting user interests is our top priority.
— CZ (@cz_binance) 23 March 2018
Since 2017, Japan became the first country in the world to set up a regulatory framework for cryptocurrency exchanges and it required these exchanges to get licensed before they can operate in Japan. Hence, Binance is required to come licensed first with the local regulator in Japan, before it can on-board clients.
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