Under pressure from regulators from around the world, the large exchange Binance is examining the possibility of setting up its headquarters in Ireland.. So far, it has been operating worldwide for years under what its CEO Changpeng Zhao calls a “decentralized” structure.
A Wednesday report by Irish media company Independent found that Binance had set up three subsidiaries in the country on September 27. -Binance (APAC) Holdings, Binance (Services) Holdings and Binance Technologies- and that Zhao was named as director of each.
In an interview with Reuters published on Thursday, Zhao said Binance is currently “in the process of setting up some headquarters in different parts of the world.“When asked if Ireland was part of Binance’s plans for formal headquarters, he replied, ‘Yes, that’s right.’
“Historically, we claim that we do not have a headquarters,” said Zhao. Add:
â ???? When we started, we wanted to adopt decentralized principles, no centralized, global work, no borders. It is now very clear that in order to manage a centralized exchange you need a centralized legal entity structure behind it.
Binance’s move to enforce compliance comes when Regulators around the world have taken steps to restrict the services provided by the exchange or to warn their citizens not to trade on the platform without a license.
Binance’s corporate structure has long been opaque; Reuters reported that its holding company is registered in the Cayman Islands.
After Binance was founded in China in July 2017, Binance quickly played regulatory arbitrage worldwide after the Chinese government cracked down on domestic crypto exchanges. this year. Binance quickly relocated its headquarters to Tokyo before expanding to Hong Kong and Taiwan.
Binance in Malta
Binance had announced its intention to start operations in Malta in March 2018, and then Maltese Prime Minister Joseph Muscat personally welcomed the company on social media. Binance went on to register its European charity and service partners in the island nation.
Welcome to #Malt @binance. Our goal is to be the global leader in the regulation of blockchain-based businesses and the jurisdiction for quality and choice for world-class fintech companies – JM @SilvioSchembri https://t.co/3qtAQjOpuQ
to???? Joseph Muscat (@JosephMuscat_JM) 23 March 2018
Welcome to Malta, Binance. Our goal is to be the global leader in the regulation of blockchain-based businesses and the jurisdiction for quality and choice for top fintech companies -JM @SilvioSchembri
Although the Maltese Financial Services Authority (MFSA) announced in July 2018 that it was still working on a regulatory framework for licensing crypto businesses, The exchange with the local management seemed very pleasant.
Zhao® appearedÂ often with government officials, and former Maltese President Marie-Louise Coleiro Preca has been appointed to the Senior Advisory Board of Binance Charity and the Blockchain Charity Foundation, which is supported by Binance.
In February 2020, the MFSA announced that local reports claiming Binance was a Malta-based exchange were false, stating that “Binance is not authorized by the MFSA to operate in the cryptocurrency space. and is therefore not subject to regulatory oversight by the MFSA. “
While the reports appeared to have surprised much of the media and crypto community, Zhao went to Twitter and assured that “nothing has changed in Malta, for Binance or any other cryptocurrency exchange. Malta has not yet licensed anyone.”
In July of this year, The MFSA issued a new warning emphasizing that Binance is not approved to operate in Malta.