Changpeng “CZ” Zhao, the chief executive of cryptocurrency exchange Binance, is facing questions about the headquarters of his company after recent events unfolded in Malta.
In a Twitter thread published yesterday, the crypto exchange boss shed some light on the company’s apparent banishment from its headquarters in Malta- a move that was made official on the day as well.
Malta Disowns Binance
On Friday, the Malta Financial Services Authority (MFSA) published an official statement in which it made clear that it had not approved for Binance to operate in the country. In the statement, the regulatory body explained that recent media reports had dubbed Binance “Malta-based cryptocurrency exchange,” but explained that the company has never been granted a license to operate in the company and didn’t even fall under the agency’s regulatory oversight.
There is a mix of truth, FUD & misconception. https://t.co/9rMMAmc1G9 is not headquartered or operated in Malta. This is old news & has always been the case, hence there is quite a bit of FUD turning this into a breaking story. The community’s comments show that understanding. https://t.co/eXCq8rO1Ue
— CZ Binance 🔶🔶🔶 (@cz_binance) February 21, 2020
Binance has been operating in Malta ever since 2018, after the firm was forced to leave its home country of Japan due to pressures from the financial regulator there as well. Ever since the decision to open the office was made known, the entire crypto industry seemed to just believe that Malta had been Binance’s new home, and it was quite understandable. Malta has made its name for being an innovative hub for FinTech and crypto companies, even getting the nickname “Blockchain Island” over the past few years. Being one of the top crypto exchanges in the world, it was only logical that Binance would be basing its operations in an enabling environment.
However, as yesterday’s release made clear, exchanges looking to operate on the island will need to obtain a license under the provisions of the Virtual Financial Assets Act of 2018. Currently, Binance doesn’t possess such a certification.
CZ’s Explanation Offers Little in terms of Clarity
So, the question on the minds of everyone is, where in the world is Binance’s headquarters? In his Twitter thread, Zhao tried to provide some clarity on the matter, explaining that there has always been a misconception about the company and its headquarters.
In his thread, he said, “There are misconceptions some people have on how the world must work a certain way, you must have offices, HQ, etc. But there is a new world with blockchain now. Again, some of our community understands this, and some don’t. Hence, lots of confusion.”
He further explained that the firm has a number of regulated entities across the world, with all of them either operated by the firm or through a network of partners. Wherever they go, they make it a mission to comply with regulators and their policies. Through all of that, they’ve been able to successfully experiment with being a truly decentralized autonomous organization. It’s worth noting that his thread didn’t specifically answer the question of where Binance’s actual headquarters are. Instead, he seemed to imply that his firm is the organizational equivalent of being a “Citizen of the world.”
One of the replies to his thread linked to a February 13 Decrypt article claiming that Binance is based in the Cayman Islands and Seychelles, it’s easier to hear from the horse’s mouth since, as CZ said, misconceptions were what led to this mess. However, given that CZ is suspiciously ambiguous, the question continues to linger.
