The Securities Commission Malaysia (SC) has ordered the global cryptocurrency exchange Binance to close its operations in Malaysia.
The largest cryptocurrency exchange on the planet has been facing the flak of regulators in several countries for compliance issues. The securities regulator of Malaysia announced Friday “enforcement actions against Binance for illegally operating a digital asset exchange (DAX).”
Under Malaysia’s regulation, digital asset exchange operators must be registered with the Securities Commission as Recognized Market Operators (RMO).
Since the global crypto exchange is operating in Malaysia without being registered, the Malaysian securities watchdog “has issued a public reprimand” against four Binance entities and the company’s CEO, Changpeng Zhao (CZ), for continuing to operate illegally in Malaysia. According to the SC, Binance continued to operate in the country despite being included in the regulator’s Investor Alert List in July 2020.
The four entities are Binance Holdings Ltd. (registered in the Cayman Islands), Binance Digital Ltd. (registered in the U.K.), Binance UAB (registered in Lithuania) and Binance Asia Services Pte Ltd. (registered in Singapore).
All four Binance entities have been ordered by the securities regulator to “disable the Binance website (www.binance.com) and mobile applications in Malaysia within 14 business days from 26 July 2021.”
They must also “immediately cease all media and marketing activities, including circulating, publishing or sending any advertisements and/or other marketing material, whether via emails or otherwise, to Malaysian investors.” Furthermore, they must “immediately restrict Malaysian investors from accessing Binance’s Telegram group.”
The regulator also specifically ordered Zhao “to ensure that the above directives are carried out.”
“Investors are advised to stop dealing with and investing through illegal DAX. Those who currently have accounts with Binance are strongly urged to immediately cease trading through its platforms and to withdraw all their investments immediately,” the regulator said to investors.