Malta Regulator Warns against Two Unlicensed Crypto Exchanges

Malta Regulator Warns against Two Unlicensed Crypto Exchanges

The Malta Financial Services Authority (MFSA) has issued warnings to two crypto companies who claim to be licensed to operate in the country.

Both COINMALEX and Crypto Foxtrades alleged that they were authorized to operate in Malta, but the market regulator denied their claims.

MFSA went up to say:

“The MFSA wishes to alert the public, in Malta and abroad, that Crypto Foxtrades is NOT a Maltese registered Company NOR licensed or otherwise authorized by the MFSA to provide the service of an exchange or other financial services which are required to be licensed or otherwise authorized under Maltese law.”

The regulator has also issued a similar warning to COINMALEX.

Binance unlicensed to operate in Malta

It seems that this is not the first warning issued to unauthorized exchange as the regulator had earlier stated that Binance was never approved to operate in the country.

MFSA released a public statement saying that Binance “is not authorized by the MFSA to operate in the crypto currency sphere.”

While Binance is referred to as a crypto business regulated by Malta, the MFSA has made a similar statement before, claiming:

“Following a report in a section of the media referring to Binance as a ‘Malta-based cryptocurrency’ company, the Malta Financial Services Authority (MFSA) reiterates that Binance is not authorized by the MFSA to operate in the crypto currency sphere and is therefore not subject to regulatory oversight by the MFSA.”

The MFSA further stressed that under the Virtual Financial Assets Act of 2018, operating a crypto-related business in the country requires an MFSA license.

New Malta gov’t interested in Blockchain tech

Bartolo Clayton, Malta’s newly appointed Parliamentary Secretary for Financial Resources, expressed his country’s interest in blockchain technology.

Clayton clarified the government’s status towards the major crypto exchange Binance, saying:

“Binance has never been in possession of an official license by MFSA. Such statement has been further corroborated by Changpeng Zhao, CEO of Binance, on his personal Twitter account where he also stated that Malta has not changed its position.”

0 0 vote
Article Rating
Share this page
Notify of
Inline Feedbacks
View all comments
Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.