Friday, September 24, 2021

Malaysian Securities Commission Orders Binance to Shutdown Operation

The Securities Commission Malaysia (SC) has on 30th July 2021 ordered Binance, the largest cryptocurrency exchange by trading volume to shut down operation in the country within 14 days.

The regulatory agency took the action against Binance for operating a Digital Asset Exchange (DAX) illegally in the country.

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According to the report, under sections 7(1) and 34(1) of the Capital Markets and Services Act 2007, all DAX operators must be registered as Recognized Market Operators (RMO) by the Securities Commission Malaysia (SC).

The report reads in part as follows:

“Accordingly, the SC has issued a public reprimand against Binance for continuing to operate illegally in Malaysia despite being included in the SC’s Investor Alert List in July 2020. In this regard, the public reprimand was issued against Binance Holdings Limited (Registered in the Cayman Islands), its CEO Zhao Changpeng, as well as three other Binance entities, namely Binance Digital Limited (Registered in the UK), Binance UAB (Registered in Lithuania) and Binance Asia Services Pte Ltd (Registered in Singapore).”

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The report further stated that all four Binance entities have been ordered by SC Malaysia to disable the Binance official website and mobile applications in Malaysia within 14 days, effective from 26th July 2021.

The crypto exchange is also ordered to immediately stop all media and marketing activities in the country, including circulating, publishing, or sending any advertisements and other marketing materials, whether via emails or other means, to Malaysian investors.

Finally, Binance has been ordered by the financial watchdog to restrict Malaysian investors from accessing the Binance Telegram group.

The agency has also ordered Changpeng Zhao (CZ), the CEO of Binance, to ensure that the above directives are carried out accordingly.

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SC also advised Malaysian investors to stop dealing with and investing through illegal DAX.

The Securities Commission Malaysia noted:

Those who currently have accounts with Binance are strongly urged to immediately cease trading through its platforms and to withdraw all their investments immediately.

“The public is reminded to alert the SC if they come across any suspicious websites or receive any unsolicited phone calls or e-mails offering investment advice and opportunities, especially those that claim to offer high returns with little or no risks.”


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Tobi Loba
Tobi Loba is a passionate writer with over 3 million readers from all over the world. She graduated from a reputable university. She joined the crypto ecosystem about two years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects.

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