Binance is a globally popular Crypto exchange platform that grew extremely fast after its establishment. However, the decentralized nature of cryptocurrency Technology has caused inconvenience to many regulators around the world. Lately, Malaysia’s financial security watchdog has announced that it will hold all the operations and applications of the cryptocurrency exchange platform. It also warned its citizens who invested in cryptocurrency true Binance to take down all their investments to avoid any loss.
Malaysia to Reprimand Binance
Securities Commission Malaysia announced on Friday that they will enforce strict actions against Binance for illegally operating digital asset exchange (DAX).
Recently the United kingdom’s regulations also caused Binance to quit its activities in the geopolitical region. UK Binance faces an umbrella ban as it wasn’t registered with the financial security watchdog in the UK appointed for cryptocurrency exchange platform regulations.
This is a similar case as the company, Binance didn’t register under the legal authorities and continued to operate unlawfully. according to Malaysia guidelines Any digital asset exchange Mast is registered with the securities commissions as recognize market operator. However, Binance didn’t get along with the country’s legal norms and brought this upon itself. Malaysia security Commission ordered to put a stop on Binance operations in the next 14 days for or unlawful continuation of activities of digital asset exchange.
It is hereby said to Binance to disable both its website (www.binance.com) and mobile application within the next 14 days that is 26 July 2021. They must immediately put down all media and marketing activities, including advertisements and social posts. The SC also asked the Binance users in Malaysia who carry on investing and trading through Binance to prohibit the participation of Binance’s group in Telegram (a social media texting application).
Binance was warned regarding this treacherous act a year ago, in July 2020 it was added to the regulator’s Investor Alert List. however, it paid the least attention to it and continued to illegally operate in Malaysia. The popularly used crypto exchange interface seems to be ignorant of the needs of regulators in different countries. The Malaysian financial securities watchdog “issued a public reprimand against four Binance entities” along with Changpeng hao, the company’s CEO [who, recently claimed to step down from his post of CEO]. The regulators emphasized these provisions by addressing Chanpeng Zhao “to ensure that all the above directives are carried out”.
The four entities are as followed:
- Binance Holdings Ltd. (registered in the Caymen Islands)
- Binance Digital Ltd. (registered in the UK)
- Binance UAB (registered in Lituania)
- Binance Asia Service Pte Ltd. (registered in Singapore)
The securities commission of Malaysia also advised the investors who use Binance as their crypto wallet, or trading and investing interface “to immediately cease trading through its platforms and to withdraw all their investments immediately” so that the citizens of the country don’t face major financial loss. Hence, the 14 days time frame has been granted to Binance for the sake of their investors.
Binance Took Stance To Make Regulatory Compliance It’s Priority
Binance has faced numerous regulatory problems and compliance non-alignment. Binance has been warned regarding the claim of jurisdiction without being authorized by the geopolitical region’s appointed authorities. Such an example has already been mentioned earlier in the UK. Other countries felt inconvenient due to Binance’s unlawful demeanor such as Japan, Hing Kong, Caymen Islands, Thailand, Germany, and Lithuania.
As regulatory troubles continue to mount on the company, the CEO of Binance, Changpeng Zhao took accountability for the situation and said that they “want to be licensed everywhere… From now on we are going to be a financial institution.”
Binance has also announced the possible changes they intend to bring in the company to tune in with the regulators. Zhao also said that he is looking forward to stepping down from his position as the company needs “a strong compliance background CEO to show the commitment to compliance as this is the top priority of the organization”.