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Binance banned in Malaysia, given 14 days notice to shut down operations

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The Securities Commission of Malaysia (SC) issued a notice in which it accused the world’s largest crypto exchange by trading volume Binance of illegal operation in the country. The regulator warned the marketplace that it has 14 days to shut down operations in Malaysia. As such, Binance should shut down its website and mobile app, and end its media campaign in the country.

SC also demanded that Binance stop sending mailings and various promotional offers on behalf of the exchange to Malaysian investors. The regulator insists that residents of Malaysia be denied access to the Binance Telegram channel.

The Securities Commission has committed Binance CEO Changpeng Zhao to ensure full compliance with the directive. The exchange declined to comment on the regulator’s report.

It is currently unknown if Binance intends to follow this scenario. Details of the incident will appear only over time.

SC stated that Binance continues to operate in Malaysia despite previous warnings. Indeed, in July 2020, SC Binance announced that it was not allowed to work in Malaysia. Previously, SC added Binance to the list of legal entities whose activities do not comply with the law.

At that time, SC issued an Investor Alert List; which includes several digital asset exchanges offering services in the country without the necessary permission from Malaysian regulators.

“Users must stop all interactions with Binance. Those who currently have accounts on this exchange strongly advised to promptly withdraw all their investments”, the regulator noted.

The announcement also ordered Binance CEO Changpeng Zhao to fully comply with the listing requirements. The Malaysian Securities Regulatory Authority has also called on citizens to stop trading on cryptocurrency exchanges that operate illegally in the country.

The pressure on Binance continues

The latest news on comprehensive regulations specifically targeting cryptocurrency exchanges continues to come from around the world. From warnings to investigations and now outright bans, Binance appears to be under pressure from financial regulators around the world.

As we can see, Malaysia joins the list of global regulators that recently issued warnings or took action against the exchange.

Earlier in July, Italy’s financial regulator issued a warning against Binance; stating that the platform was not authorized to offer services in the country. In addition to Italy, countries such as Germany, Poland, Japan, Thailand, Singapore, the United States and the United Kingdom have also issued warnings about Binance.

Amid pressure from supervisory authorities, the CEO of the exchange, Changpeng Zhao, issued a letter in which he outlined the platform’s plans to protect customers and ensure compliance.

Binance has taken steps to mitigate the situation; and its CEO has pledged to work with regulators as part of plans for further expansion around the world. In addition, the exchange made a number of policy changes that resulted in lower withdrawal limits for users who have not yet completed the platform’s authentication protocols. Meanwhile, the exchange also announced plans to stop trading in cryptocurrency derivatives in Europe, starting with Germany, Italy and the Netherlands.

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