Binance Isn’t Authorized To Operate In Malaysia, Says Nation’s Financial Watchdog

92
Binance Isn’t Authorized To Operate In Malaysia, Says Nation’s Financial Watchdog
Advertisement
   

The Malaysian Securities Commission (SC), a statutory body responsible for regulating capital markets in the country, has stated that Binance is not allowed to operate in Malaysia.

Malaysia SC issued an alert on July 17 regarding firms not authorized to operate in the country as they have not complied with the regulator’s securities law. The first entity on the list is Binance, the world’s largest cryptocurrency exchange by trading volume. The financial watchdog notes that the exchange is “operating a recognized market without authorisation from the SC.”

According to Malaysian law, cryptocurrency exchanges must register as Digital Assets Exchanges with the Commission. They are then given a nine-month probationary period to fulfill all the regulatory requirements. 

At the moment, only three crypto exchanges are permitted to operate in Malaysia by the SC: Tokenize Technology, Luno Malaysia, and Sinegy Technologies. Binance currently offers crypto trading via the Malaysian ringgit. Moreover, the exchange had revealed earlier in March of this year that it would be rolling out the Binance debit card in Malaysia first before expanding to other countries. It remains unclear whether Binance will continue with these plans after the recently issued statement by the Malaysian financial regulator.

Not Binance’s First Encounter With Financial Regulators

Notably, this is not the first time Binance exchange is having an unpleasant encounter with financial regulators.

Advertisement
   

In February, Malta’s regulatory agency stated that Binance is not licensed to operate in the country. The Malta Financial Services Authority (MFSA) also noted that the exchange is not subject to regulatory oversight by them. 

Most recently, Brazil’s watchdog also declared that Binance is not authorized to operate in the country and even restricted it from offering derivatives contracts within its jurisdiction. 

Like many other crypto exchanges, Binance has always sought a place to call home. So far, it is not known where the exchange is headquartered. The CEO of the exchange, Changpeng Zhao, has however maintained that Binance has several regulated entities around the world.

Mediterranean fottress island of malta – also known as blockchain island


Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.