Malta, which was unknown to cryptocurrency before 2017 has now been the hub for crypto business. The nation is welcoming cryptocurrency operations with open arms. However, the authorities are worried about the growing crimes in cryptocurrency and have asked Binance to shut its operations amid complaints from many.
Malta is the one nation that is embracing cryptocurrency with open arms. Malta was unknown in the cryptocurrency market before 2017. Malta has started dealing in cryptocurrency very recently.
The nation is a paradise for cryptocurrency companies and has proclaimed itself to become the cryptocurrency island. Since the nation is much into the cryptocurrency business, this island has received $60 billion in cryptocurrency which has become the cause of concern among officials worldwide.
They gathered to share their worries but Malta has assured them that everything is ok. The crypto watchdog the Financial Action Task Force (FATF) assessors gathered in Paris last week, reported by Times of Malta, to evaluate Malta’s growth as a crypto centre.
Malta might have been embracing cryptocurrency in full swing but one thing is that the nation is lagging to take adequate steps to combat financial crimes. As per the reports, the FATF was contemplating whether Malta should be included in the list of nations that are not doing anything about the crimes increasing in cryptocurrency.
FATF has informed that before regulating this sector, Malta wants to welcome hundreds of cryptocurrency companies. It means that the nation is a difficult country in today’s time when criminals are shifting to digital money laundering methods, one of which is cryptocurrency.
But the European countries have assured that the crypto business is well regulated. The $60billion that Malta has received, they say it is just the 2% of the worldwide crypto transactions that they have with them.
Financial crimes are up
However, the financial crimes in Malta are increasing, the prosecution is on the rise. The FATF has shown a great deal of concern as not many people are coming forward with their complaints or showing the culprits of serious crimes. But still all is not bad with Malta.
There were a lot of reviewers on the rising cryptocurrency situation, as per the paper. The nation is making good progress in the crypto business and the people have agreed upon it. Binance, one of the largest cryptocurrency exchanges has relocated itself to Malta, made a significant move and was in headlines for this. As per the reports, it opened its offices in 2018 in Malta.
However, the crime against cryptocurrency frauds has been increasing in the nation and there were several complaints made against it. Numerous clients in the Southern European Island country have lost their money as a result of the exchange
Hence, the Binance has been refused the license to sell services or operate from Malta. The Maltese officials have asked the exchange to shut its operations.
Changpeng Zhao, CEO Of Binance, had later informed that the firm’s headquarters was not in Malta. The exchange has been shifting its headquarters for some time. The exchange had earlier also shifted its headquarters from China when the Chinese government started tightening down on cryptocurrency. It went to Japan to start the operations but it was not supported there either. Cayman island is the current headquarters of Binance.
Apology by Binance
The Binance CEO has apologised to the people of Malta for the complaints of fraud and errors which left many messages complaining that their accounts have zero balance. He wrote on the company’s website that it had been a tough week for the company and its users, which had resulted in many being unable to access their accounts or discovering them with zero balance.
The CEO has assured that the company will increase the priority on the website to increase accessibility and avoid a backlog of requests to access it and make withdrawals or transfers. His comments came after the customers complained that their balances were incorrect and their orders for more cryptocurrencies were not being processed.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.