Bitcoin Globla News (BGN)
March 26, 2018 -- ADVFN Crypto NewsWire -- Binance, the world’s
third-biggest cryptocurrency exchange by trading volume, has been
ordered to shut down operations in Japan. Binance moved from Hong
Kong to Japan last October after the Chinese government banned ICOs
and shut down cryptocurrency exchanges. Binance will now move its
operations from Japan to the Mediterranean island nation of
Malta.
The Financial Services Agency (FTA), Japan’s financial watchdog,
told Binance in a letter last week that it has been operating in
Japan without a license, and that it is illegally allowing Japanese
citizens to open accounts without confirming their identities. The
FSA said that it is working with police and threatened Binance with
criminal charges if it continues operations in Japan or fails to
suspend services to Japanese residents immediately. Japan
represents Binance’s second-largest user base by country and 7% of
its trading volume.
Binance CEO Changpeng Zhao at first downplayed reports of the
letter: “We received a simple letter from JFSA about an hour ago.
Our lawyers called JFSA immediately, and will find a solution.” The
next official statement from Zhao was an announcement that Binance
was moving its operations to Malta.
Zhao later released this statement: “We are convinced that Malta
will be the next hotbed for innovative blockchain companies and a
centre 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.”
Malta is a cryptocurrency-friendly jurisdiction that will allow
Binance users to trade digital currency for hard currency for the
first time.
Malta Prime Minister Joseph Muscat tweeted a welcome to the
Binance, “Welcome to Malta. We aim to be the global trailblazers in
the regulation of blockchain-based business and the jurisdiction of
quality and choice of world-class fintech companies.” He later said
in an official statement: “The concept of cryptocurrencies excites
me as it strikes at the heart of a key philosophical element that
economy students are taught at the beginning of their course. ‘Have
any of you ever thought about what gives paper money its value when
it’s ultimately just pieces of paper? The reason they have value is
because society attributes value to them.’ Now some people, who in
my opinion are geniuses, are arguing that value can similarly be
attributed to virtual currencies...Financial services and iGaming
companies invest in Malta because of our regulatory basis and our
HR system, but also because of our imputation system of taxation.
These blockchain operating companies don’t care about our taxation
system but are coming to Malta, because of our innovative
regulatory structure that will certainly be the first, and I think
also the best, in the world.”
Silvio Schembri, Malta’s Parliamentary Secretary for Financial
Services, Digital Economy & Innovation, stated that: “This is a
clear vote of confidence in our country and the work being done in
this sector, mainly by the latest policy launched to offer a
regulatory framework of DLT operations. It is obvious that Malta
has become a natural point of reference on the international sphere
and companies such as Binance will continue to look into Malta to
further expand their operations or establish a base. Binance’s
presence in Malta sustains our vision, that of making Malta ‘The
Blockchain Island.’”
Binance, which employs around 150 staff, generated $200 million
profits from trading fees over the last three months.
The last big news on Binance was when it servers crashed in
February, creating a firestorm of concerns that it was hacked (it
wasn't).
Binance has not yet disclosed a timeline for opening the Malta
office.
By: BGN Editorial Staff