Malaysia announces enforcement action against Binance

July 30, 2021


Malaysia Binance

The Securities Commission of Malaysia (SC) has announced enforcement action against Binance "for illegal management of the digital asset exchange (DAX)".

The SC notice refers to Cayman Islands-registered Binance Holdings Limited, CEO Changpeng Zhao, as well as units of Binance Digital Limited (UK), Binance UAB (Lithuania) and Binance Asia Services Pte Ltd (Singapore).

According to the press release, the regulator issued a "public reprimand" to the listed entities and management for continuing illegal activities in Malaysia. The SC ordered them to "disable the binance.com website and mobile apps in Malaysia within 14 days, starting from 26 July 2021".

The company must also stop promoting services to local investors and close their access to Binance's Telegram channel.

"Investors are advised not to work with the illegal DAX [...]. Owners of active Binance accounts are urged to stop trading through the platform and withdraw all their funds," the notice reads.

Earlier SC added Binance to the list of entities, activities of which do not comply with the law.

On July 30, Bloomberg, citing unnamed sources, reported that the Anti-Money Laundering Agency of India will conduct an investigation into the role of Binance Holdings in the money laundering case. Previously, the company's WazirX exchange was suspected of violating currency regulations.

According to the publication, the authorities have summoned Binance's management for questioning. The agency believes that the platform did not collect the necessary information in accordance with FATF recommendations.

Recall that in June, the UK Financial Services Authority banned Binance Markets Limited from any regulated activities in the country without prior written approval.

The Cayman Islands began inspecting Binance's operations, Thailand and Hong Kong accused the company of operating without a license, and Japan issued another warning to the company.

Polish regulators have warned consumers about the risks of interacting with the platform, while Italy and Malta have accused Binance of unregulated activities.

Amid pressure from regulators, the exchange's CEO Changpeng Zhao published a letter outlining the platform's plans to protect customers and ensure compliance.

He later announced that he was looking for a CEO candidate, but stressed that he was not leaving Binance.

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About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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