The Binance-run Blockchain Charity Foundation may face legal trouble as Malta has issued a warning to the exchange after three years of failure to file accounts.
In a letter dated July 23, the commissioner’s office stated that the world’s largest crypto exchange had “ignored” yearly warnings to file its accounts for 2018, 2019, and 2020.
The Malta Community Chest Fund approached the court for justice in the instance of unfulfilled cryptocurrency donation pledges, which led to Binance’s regulatory troubles in Malta.
In the last three years, the value of pending gifts by Binance’s charity foundation has climbed from a few hundred thousand euros to €7 million, according to the community fund.
Binance’s illegal stay will also be reported to the police, according to the authorities. The Blockchain Charity Foundation of Binance, on the other hand, stated that they were examining their financial documents, which will be filed to the commissioner for voluntary organizations by August 2019.
Binance has been unable to obtain a license to deliver its services in Malta, according to Malta’s watchdog, the Malta Financial Services Authority (MFSA).
“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.
The situation with Binance has sparked a verbal spat between Malta’s ruling and opposition parties. Bernard Grech, a nationalist and opposition leader, chastised the administration for failing to turn Malta into a blockchain centre and accused them of corruption.
“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 has reversed its position, denying any involvement in corruption. It went on to say that the opposition’s remarks were “irresponsible.”
