Binance, one of the largest cryptocurrency exchanges, has been in Malta since 2018, but now it seems the company is moving to France.
The company moved to Malta after the regulatory pressure in its original home of China. The island was called, ‘the blockchain island’ after releasing its open regulations towards the industry.
Binance also has exchanges around the world in places like Liechtenstein and Singapore. Malta was said to be Binance’s push to Europe, but it appears the nation has done enough for Binance and that they are looking for new pastures. The major European nation of France is reportedly the next step for the exchange headed by Changpeng Zhao.
Why did Binance go to Malta?
The Malta government created three bills in June 2018. These established a framework for the industry. It gave outlines and policies for initial coin offerings (ICOs), exchanges and other aspects of the industry.
It was these laws by the Malta government, that were the deciding factor in Binance’s decision to move to Malta. Other major exchanges like OkEx also have headquarters in Malta. Yet, further regulation may be making Binance hesitant.
Why will Binance leave?
The rumor comes from sources close to Binance. They have claimed that the exchange does not plan to sign the Malta VFA license. They will look to attempt to sign a French license instead, allowing them to move to the country. This could leave the 30 staff members at Binance in the lurch and without a job. Yet, others have said that the Malta office will be changed into a European customer service hub.
Yet much of the regulation for France and Malta as well as the Binance plan, hinges on the European Union (EU). The European commission has to pass Malta’s framework to allow for the France move.
This opens another can of worms in the story. Are Binance really leaving due to seeing france as a better option or is their hand being forced? Perhaps Binance and Malta regulators have been butting heads or a political issue may have arisen?
It is too early to say, but Binance have often had controversies in the past. Claims of plagiarism and meddling with their K line on Binance JEX have caste a dark cloud over the exchange. Are they leaving Malta to escape something? We will have to wait and see.