Binance is about to leave its headquarters in Malta and relocate to France, according to sources in the know.
One of the largest cryptocurrency exchanges, Binance, has been in Malta since 2018, after the exchange was banned in its native home of China.
Malta is an island in Europe which was dubbed, ‘the blockchain island’ and has long been known for its acceptance towards crypto company and projects.
Part of the reason for the tag is down to the country’s regulations and framework for the industry, something that is lacking in many major nations. In June 2018, the Malta government released three bills. The legislation established a framework for the industry. It gave outlines for initial coin offerings (ICOs), exchanges and other aspects of the industry.
The laws and acceptance of the industry no doubt prompted Binance’s move which saw other major exchanges follow suit, like OkEx.Binance, who has exchanges in Liechtenstein and Singapore and locations in other parts of the world had seen Malta as a great location for the European side of the business.Now, according to our sources, the major European nation of France is the new base for their European expansion, but why?
Why are Binance leaving Malta?
According to our sources, the exchange does not plan to comply or sign the Malta VFA license and as such will once again have to move their headquarters. They will look to attempt to sign a French license and not bother with the Malta one.
The 30 staff members may be wondering what this means for them. According to our sources, Malta is looking to turn the Malta branch into a European customer service hub.
However, before anyone starts packing away their desk or changing the signs, much of the regulation for France and Malta depends on the European Union (EU). The European commission has to pass Malta’s framework, which would also mean that a France move depends upon this.
This would ultimately mean that the sources initial rationale would not make much sense. Unless Binance were so confident of this framework passing in the European commision. This seems a little unlikely though.
Could Binance be moving due to other reasons? Perhaps. Binance have often had controversies in the past, partner that with any other political or regulatory issues, this could mean an exit from malta is necessary. This is all speculation, but it would seem that Binance is looking for a new place to call home.