Binance is reportedly set to leave its adopted home of Malta and head to France, in a shocking move that would end their base in the country.
Binance has been in Malta since 2018, but now it seems the company is moving to France according to sources close to the exchange.
The exchange has long been in Malta, this was after being turfed from their Hong Kong/China base following restrictions from the government. The move to Malta was made official after the island in the south of Europe made various regulations that were friendly towards the cryptocurrency industry.
After passing the three bills on the industry in June 2018,the island was dubbed, ‘the blockchain island’. The Malta government in their regulations, created a framework for the industry. It showed guidelines for initial coin offerings (ICOs), exchanges and other parts of the industry.
It was these laws by the Malta government, that prompted Binance’s decision to move to Malta, along with other major exchanges like OkEx. However, the rumored new regulations have made Binance think of moving once again.
The rumor comes from sources close to Binance. They claim that the exchange does not plan to comply or sign the Malta VFA license. In fact, they will look to sign a French license instead. What this means for the over 30 staff members at Binance in Malta is unclear. Will they lose their jobs as Binance clears out? Our sources don’t think so, believing that It may be that Malta turns into a European customer service hub.
Binance, who has exchanges in Liechtenstein and Singapore, alongside other offices in the world, spanning different continents. Malta was said to be Binance’s way into Europe, but it appears the group now wants a change and is targeting the major European nation of France.
Yet, one thing that would scupper this rational would be that much of the regulation for France and Malta centers on the European Union (EU). The European commission still has to approve Malta’s framework, which would also cause the same
This would mean that the sources initial rationale does not fit. Is there more to this story than meets the eye. Could Binance be baulking under regulatory or political pressure. Is Binance and Malta’s relationship souring?
Potentially. Binance have often had controversial moments in the past. Plagiarism and other issues have seen Binance’s reputation fall a little, and this could underlie a problem between Binance and Malta.