Binance Opening Exchange in Malta after Japanese Regulator Crackdown

Binance has been making headlines nonstop over the past few weeks, first due to a hacking attempt, then over their bounty program, followed by the announcement of a decentralized exchange (DEX) version of Binance. Most recently, though, news from Japanese financial newspaper Nikkei reported that Japan’s Financial Services Agency (JFSA) would serve Binance with a compliance warning – a report that Binance CEO Changpeng “CZ” Zhao called “irresponsible journalism.”

Later, Zhao confirmed via Twitter that Binance was indeed served with a “simple letter” from the JFSA and would “find a solution.” Zhao, an often-imitated and highly respected figure in the cryptocurrency space, headlining Forbes list of richest people in crypto, may have been teasing the company’s next big news via a Chinese proverb: “New (often better) opportunities always emerge during times of change.”

One such (possibly better) opportunity has emerged as Binance is seeking to open an office in the Mediterranean country of Malta. CZ told Binance in an interview with Bloomberg that he’s “very confident” the world’s biggest cryptocurrency exchange by volume (according to CoinMarketCap data) will be able to announce a partnership with a Malta-based bank with the goal of launching a fiat-to-cryptocurrency exchange in the European island nation.

The move to Malta comes as the country aims to become the “global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world-class fintech companies,” according to the Prime Minister of Malta, Joseph Muscat.

Binance appears incredibly confident in their collaboration with Malta, making an investment in the country. In a separate post on Binance’s blog, Zhao said:

“After meeting with Parliamentary Secretary, Mr. Silvio Schembri, we were impressed by the logical, clear and forward-thinking nature of Malta’s leadership. After reviewing a proposal bill, we are convinced that Malta will be the next hotbed for innovative blockchain companies and a center of the blockchain ecosystem in Europe. Binance is committed to lending our expertise to help shape a healthy regulatory framework as well as providing funds for other blockchain start-ups to grow the industry further in Malta.”

While the banking partnership announcement hasn’t been made, and there’s been no word if Binance intends to continue its operations in Hong Kong where it’s currently based – but has been experiencing pressure from key regulators in the territory – Binance’s intentions in Malta have been widely publicized and the plan appears to be moving full steam ahead.

With Binance already having generated $200M in revenue in its second quarter since opening, having achieved the highest-volume in transactions of any crypto-exchange, and having become the poster child for transparency and security in the cryptosphere, Binance shows no signs of stopping and will only further dominate from here when their new DEX and fiat-to-crypto exchanges open.

 

Tony Spilotro

Tony Spilotro is a skilled content producer with over a decade of experience across editorial, SEO, and social media. Tony grew up around technology, loves video games, saw the rise of the Internet, and is a master of the search engine - cryptocurrency was a natural evolution of Tony's biggest passions

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