The Securities Commission Malaysia (SC) announced enforcement action against Binance for – in his opinion – illegally operating a Digital Asset Exchange (DAX). As a result, SC issued a public warning against Binance for continuing to operate in Malaysia despite being included in SC’s investor advisory list since July 2020. In this regard, the public warning was issued against Binance Holdings. Limited (registered in the Cayman Islands), its CEO Changpeng Zhao, 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)(details provided by the Malaysian Authority).
All four Binance entities were ordered by the SC to:
- disable the Binance website and mobile applications in Malaysia within 14 business days, from July 26, 2021;
- immediately cease all media and marketing activities, including the dissemination, posting or sending of advertisements and / or other marketing material, by email or otherwise, to Malaysian investors;
- immediately prevent Malaysian investors from accessing Binance’s Telegram group.
CZ, as CEO of Binance Holdings Limited, was also specifically tasked with ensuring the implementation of the aforementioned directives.
The Securities Commission Malaysia has urged those who currently have accounts with Binance to immediately stop trading through its platforms and immediately withdraw all their investments.
Considering that cryptocurrency laws are changing around the world, Binance does not have authorizations to operate in every Country.
In this regard, the CEO CZ recently stated that he wants to collaborate with regulators around the world to grow the exchange and make it a financial institution.
