The Malta Financial Services Authority (MFSA) published a reminder of a public statement on Thursday that it issued in February 2020 about the unlicensed status of Binance, a major cryptocurrency exchange, to operate in the country. According to the press release, the reiteration of the statement comes in the wake of similar warnings released by other regulators globally and an ‘increase in complaints’ relating to dealing with unauthorized companies, such as the exchange.
“Following the issuance of various recent warnings by competent authorities of other jurisdictions, along with an increase in complaints relating to dealing with unlicensed entities, including Binance, the Authority wishes to reiterate that Binance is not licensed nor authorized by the MFSA to conduct any VFA related activities in or from Malta and therefore falls outside the MFSA’s regulatory oversight,” the authority noted. On February 21, 2020, the MFSA stated that Binance is not authorized by the watchdog to operate in the digital assets sector in Malta.
Furthermore, the authority quoted in the public reminder its ‘Guidance Note to the Public Regarding Cryptocurrency Scams’, asking consumers to read it to avoid falling victims to crypto-related scams. “Consumers should not enter into any transactions unless they have ascertained that the entity with whom the transaction is being made is authorized to provide such services by the MFSA or another reputable financial services regulator,” the MFSA warned.
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Regulatory Tussles Globally
Binance has been making the headlines in the last weeks due to its regulatory troubles across the world. Early in July, Thailand’s Securities and Exchange Commission (SEC) filed a criminal complaint against the cryptocurrency exchange for illegally offering services in the country. In addition, other countries such as Singapore, South Korea, Poland and the Cayman Islands have issued warnings on the current unregulated status of the exchange in their jurisdictions.
In June, Finance Magnates reported that the Financial Conduct Authority (FCA) banned Binance from all regulated activities in the UK.