Prime Minister Robert Abela has urged the Malta Community Chest Fund to reconsider its decision to reject a cryptocurrency donation from Binance, which is now valued at $39 million.
Speaking to the press on Thursday afternoon, Abela was reacting to reports that the MCCF had turned down the pledge due to reputational concerns, concerns also voiced by President Myriam Spiteri Debono.
The Prime Minister admitted he had not looked into the matter in detail and had only been informed about the MCCF’s decision this Thursday through Times of Malta report.
He expressed concern that MCCF was being overly strict and said the country could have made good use of the funds.
“It upsets me that a sum like that…. could possibly be lost,” he said. “If there is a chance to save the situation, I appeal for mutual agreement,” he said.
Abela said that if there were concerns about the origin or nature of the funds, there were methods available to explore those issues responsibly.
He added that Malta had been heavily scrutinised in recent years, especially from abroad, but noted the country had passed such tests with success.
“We have passed with flying colours,” he said adding that Malta has a robust anti-money laundering (AML) and counter-financing of terrorism (CFT) systems.
The Prime Minister also remarked that countries critical of Malta’s dealings with Binance would be among the first to welcome the platform on their own shores.
“Where there is an opportunity for funds to come to our country, for the benefit of the country, in particular in this case to do with patients, I don’t think we should be so, how do I put this… more puritanical than we have to be”.
His comments stand in contrast to those of President Spiteri Debono, who earlier in the day defended the MCCF’s decision to reject the donation. She described the funds as a “bogus donation” and said Binance did not have a good international reputation.
She told Times of Malta that she and the MCCF board had worked hard to protect the fund’s reputation.
“It would also be unfair to other donors who are in good faith, who abide by the laws,” she said.
The dispute centres on Binance’s demand that the funds be transferred directly to patients’ crypto wallets, bypassing MCCF’s usual disbursement process.
The MCCF refused to share patient data with Binance and accused the company of reneging on prior agreements and attempting to effectively dissolve its charitable foundation.
An agreement was quietly signed earlier this year to withdraw the pledge, with Binance’s global reputation reportedly driving the decision.
Binance has been linked to a number of controversies.
A 2022 Reuters investigation reported that $2.35 billion in illicit funds had been laundered through the platform.
A separate probe by Times of Malta and Amphora Media tied Binance to a murdered Turkish-Cypriot gambling boss who had moved over $29 million through the exchange.
A Binance spokesperson told Times of Malta: “We will ensure these funds are spent in Malta, and we thank Malta for its past support of Binance.”
It remains unclear how the company now plans to invest locally, if not through the MCCF.