MFSA issues warning on crypto-trading company Binance

Binance not authorised to carry out Virtual Financial Assets related activities in or from Malta

File Photo
File Photo

The Malta Financial Services Authority has warned the public that crypto-trading company Binance is not authorised by it to carry out Virtual Financial Assets related activities in or from Malta.

The warning comes after 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 authorised by the MFSA to conduct any VFA related activities in or from Malta and therefore falls outside the MFSA’s regulatory oversight,” it said.

It also reminded consumers of financial services and persons transacting in the crypto sector to be wary of online adverts and on social media promising high returns on investments in cryptocurrency or cryptocurrency-related products.

“Consumers should not enter into any transactions unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the MFSA or another reputable financial services regulator,” a statement read. “Regulated entities are subject to various requirements which aim to offer higher levels of consumer protection to their clients.”

In 2020, a US law firm filed class-action lawsuits which could represent tens of thousands of investors, aimed at Binance,, Bitmex, Tron and others, accusing them of having sold unlawful securities to investors in the form of digital tokens.

The 11 suits named 42 defendants in more than a dozen countries, including Binance founder Changpeng Zhao, better known as “CZ”.

The lawsuits allege that the token issuers took advantage of the market’s lack of understanding of how cryptocurrencies worked to sell these alleged illegal securities to US citizens.

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