Binance To Shift Base To Malta, Amidst Warning Letter From JFSA

March 24, 2018 by Cameron Bishop

Binance, the world’s largest cryptocurrency exchange by traded volume, has announced its plan to shift its headquarters to Malta, following an official warning from Japan’s Financial Services Authority for operating without a license.

The decision to open an office in Malta was announced by Binance’ CEO Zhao Changpeng in an interview with Bloomberg. The company, founded in Hong Kong, is on the verge of securing a deal with domestic banks to ensure smooth transactions. However, no time frame for Malta launch was provided.

Zhao said “We are very confident we can announce a banking partnership there soon. Malta is very progressive when it comes to crypto and fintech.”

Binance has been struggling to find a permanent base due to regulators crack down on cryptocurrencies across the world. After Chinese regulators started cracking down on cryptocurrencies, Binance shifted to Japan. The company was trying to get a license from the regulators to operate there. However, the exchange only received a warning from the regulators, instead of an approval. Initially, Binance’ CEO downplayed Nikkei’s reports about the warning letter. Zhao later confirmed the development through Twitter.


Malta’s Prime Minister Joseph Muscat has welcomed the decision through a tweet.


Zhao thanked the government of Malta for its positive approach towards cryptocurrencies.


Zhao disclosed that he is still negotiating with authorities in Hong Kong, but has not reached any kind of agreement. In addition to the six other crypto currency exchanges, Binance also received a warning letter from the city’s Securities and Futures Commission. According to the law of Hong Kong, digital assets are considered as securities.

While China, India, US and a few more countries are showing hostility towards cryptocurrencies, Malta is using the chance to attract investments and make itself a hub for digital assets. The government plans to certify and regulate blockchain-based businesses through the Malta Digital Innovation Authority. The organization will also establish the framework to oversee initial coin offerings.

Zhao revealed that he had been invited by the Maltese government to review an upcoming bill, which encourages investments in blockchain technology related business. Binance, whose trading volume is roughly $1.70 billion per day, is also planning to establish a decentralized exchange in the months ahead.

Avatar

Cameron works tirelessly behind the scenes ensuring his many US news stories are factual, informative and brought to you in a timely fashion before most other media outlets have them. He is an investigative journalist at heart who also has a fond interest in the money and business markets too.

Comments are closed.