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MFSA warning to the public regarding Binance and other unlicensed VFA service providers

On 21 February 2020, the Malta Financial Services Authority issued a Public Statement in which it noted that Binance is not authorised by the MFSA to operate in the virtual assets sector in Malta.

Following the issuance of various recent warnings by competent authorities of other jurisdictions, along with an increase in complaints relating to dealing with unlicensed entities, including Binance, the Authority wishes to reiterate that Binance is not licensed nor authorised by the MFSA to conduct any VFA related activities in or from Malta and therefore falls outside the MFSA’s regulatory oversight.

The MFSA reminds consumers to refer to the Authority’s Guidance Note to the Public Regarding Cryptocurrency Scams, which provides consumers with guidance on how to identify scams, and steps to take to avoid falling victim to them.

Furthermore, consumers of financial services and persons transacting in the crypto sector are reminded to be wary of online adverts and on social media promising high returns on investments in cryptocurrency or cryptocurrency-related products.  Consumers should not enter into any transactions unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the MFSA or another reputable financial services regulator. Regulated entities are subject to various requirements which aim to offer higher levels of consumer protection to their clients. A list of VFA Service Providers authorised by the MFSA may be found here.

Any queries related to the above should be addressed to VFA@mfsa.mt.