Malaysian securities regulator bans Binance operations
01:10, 2 August 2021
Malaysia’s securities regulator is the latest worldwide to hit at out at digital exchange Binance, saying it is operating illegally in the country and forcing the firm to shut down its website.
The Securities Commission Malaysia (SFC) on 30 July announced a public reprimand and ordered Binance and its three entities to immediately stop all media and marketing activities to investors in the country. In July last year, the authority had included Binance in a list of unregistered investments.
“In this regard, the public reprimand was issued against Binance Holdings Limited (Registered in the Cayman Islands), its CEO Zhao Changpeng, as well as three other Binance entities, namely Binance Digital Limited (Registered in the UK), Binance UAB (Registered in Lithuania) and Binance Asia Services Pte Ltd (Registered in Singapore).”
Prompt withdrawals urged
The SFC ordered Binance to disable its website www.binance.com and mobile applications within 14 business days from 26 July and immediately restrict Malaysian investors from Binance’s Telegram group.
“Investors are advised to stop dealing with and investing through illegal DAX [Digital Asset Exchange]. Those who currently have accounts with Binance are strongly urged to immediately cease trading through its platforms and to withdraw all their investments immediately.”
“We are aware of the notice from SC [Securities Commission] and can confirm that Binance.com does not operate out of Malaysia. Binance takes a collaborative approach in working with regulators in navigating this emerging industry and we take our compliance obligations very seriously,” a Binance spokesperson told Capital.com.
“Ready to assist”
Binance, the world’s biggest crypto exchange by volume, is facing rising regulatory hurdles across different parts of the world.
Earlier in July, Thai regulator filed a criminal complaint against Binance while Hong Kong’s Securities and Exchange issued a warning statement on unlicensed operations. These added to warnings from jurisdictions such as UK and Japan on Binance’s unregistered operations.
“Binance is ready to assist regulators from around the world and together find the optimal way to set a fair playing field - consumer protection is important to all of us. We want to create a sustainable ecosystem around blockchain technology,” said the Binance spokesperson today.
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