The latest issuance by Malaysia adds another dent to the cryptocurrency exchange’s global aspirations as more countries crackdown on Binance.
The Securities Commission Malaysia (SC) has taken action against Binance to halt operations within the country. The crypto exchange platform must disable its website and mobile application, stop all media and marketing activities, and restrict Malaysian investors from accessing its Telegram group by 8 August.
The SC affirms that the enforcement action is due to Binance continuing to operate illegally within the country despite being listed as an unauthorised entity last year. In addition, the commission also issued a public reprimand against Binance’s CEO Zhao Changpeng and other similar entities registered in the UK, Lithuania, and Singapore.
The move against Binance by Malaysia is the latest in a string of regulatory actions that the crypto exchange face by countries in Southeast Asia and Europe. Thai authorities last month filed a criminal complaint against Binance while Hong Kong issued a warning against their stock tokens; Japan also warned that the platform was not registered to operate within the country. Closer to home, Singapore’s Monetary Authority of Singapore (MAS) has also followed up with the locally registered Binance Asia after the spate of legal actions in July.
The cryptocurrency exchange is also facing enforcement actions over in Europe. Britain’s Financial Conduct Authority firmly stated that Binance was not permitted to undertake any regulated activity in the U.K, and Italian securities regulator CONSOB followed suit reaffirming that the crypto exchange was not authorised to operate in the country. In response to the scrutiny, Binance will be withdrawing all futures and derivatives products from Europe.
With a growing regulatory backlash, Binance CEO Zhao Changpeng mentioned in last Tuesday’s press conference that he is open to a new CEO as the platform makes the transition to a regulated financial entity amidst heightened global scrutiny, although his later tweet states that Binance is “actively hiring leadership with regulatory and compliance experience”, and the company has no immediate plans to change its CEO.
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