Binance-run Charity in Malta may face legal trouble

Binance-run Blockchain Charity Foundation is under threat of regulatory action in Malta as the commissioner for voluntary organizations Malta has warned the exchange over consecutive failures to file accounts for the past three years.

The office of the commissioner claimed in a letter dated 23^rd July that the world’s largest crypto exchange is guilty of “ignoring” yearly reminders to file its accounts for 2018, 2019, and 2020.

Binance’s regulatory trouble in Malta began after the Malta Community Chest Fund approached the court for justice in the case of unfulfilled cryptocurrency donation pledges. The community fund revealed that the value of pending donations by Binance run charity foundation has increased from a couple of hundred thousand euros to €7 million in the past three years

Binance’s Unauthorized status in Malta

The authorities also announced that they will be reporting Binance’s illegal stay to the police. However, Binance’s Blockchain Charity Foundation explained that they were reviewing their financial statements that would be sent to the commissioner for voluntary organizations by August 2019.

According to Malta’s watchdog, the Malta Financial Services Authority (MFSA), Binance has been unsuccessful at acquiring a license to provide its services in Malta to date.

“This letter is being sent to you at your address as, despite many attempts to trace the organization on the given address and contact numbers supplied in the file, no response was forthcoming and all communication ignored,” the MFSA wrote to the foundation’s administrators.

Political War of Words

The situation with Binance has led to a war of words between the ruling and opposition party in Malta. The nationalist and opposition leader, Bernard Grech criticized the government for the failure to make Malta a  blockchain hub and accused them of being corrupt.

“Blockchain island could have been a reality but, because of its incompetence and corruption, this government turned it into a disaster…But not before using cancer patients to make it look like there was something in it for the Maltese citizen.”, said the opposition leader, Bernard Grech.

The ruling government reverted, discarding its involvement in any corruption. Furthermore, it pointed out that the opposition’s comments were “irresponsible”.