The Securities Commission of Malaysia (SC) has indicated that it will take action against Binance, a cryptocurrency exchange. Binance has been accused of illegally operating its Digital Asset Exchange (DAX) services in Malaysia by the financial regulatory authority.
The cryptocurrency exchange's DAX operations are deemed illegal by the SC, according to a statement, the Securities Commission Malaysia (SC) today announced enforcement actions against Binance for illegally operating a Digital Asset Exchange (DAX). 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 SC.
The SC also issued cease-and-desist orders against Binance Holdings Limited, Zhao Changpeng, Binance's CEO, Binance Digital Limited, Binance UAB, and Binance Asia Services, in addition to the reprimand. In order to accomplish this, the SC has ordered Binance to disable its main website and any related mobile apps in Malaysia within 14 business days, beginning July 26, 2021.
Binance CEO Changpeng Zhao was also ordered to guarantee that the injunction was followed to the letter. Malaysia's securities regulator also encouraged citizens to avoid investing with unlawfully operated crypto exchanges in the country.
The news out of Malaysia against Binance is only the latest in a series of broad regulatory initiatives aimed squarely at the exchange behemoth. The platforms appear to be under the thumb of financial regulators all over the world, from warnings to investigations and now outright prohibitions.
Binance was issued a warning by Italy's financial regulator earlier this month, indicating that the platform was not authorised to offer services in the nation. Other governments that have issued warnings regarding Binance include Germany, Poland, Japan, Thailand, Singapore, the United States, and the United Kingdom.
Binance has made steps to alleviate the issue, with its CEO committing to collaborate with regulators as part of plans for even further global expansion. There have also been a flurry of policy adjustments at the exchange, with withdrawal restrictions for users who have yet to pass the platform's identification verification requirements being slashed.
Across the meantime, the exchange has announced that it will phase out crypto derivatives trading in Europe, starting with Germany, Italy, and the Netherlands.
Investors should avoid interacting with and investing in the unlawful DAX. Those who currently have accounts with Binance are strongly advised to immediately stop trading on its platforms and withdraw all of their funds.
The public is urged to report any suspicious websites or unsolicited phone calls or e-mails offering financial advice and opportunities to the SC, particularly those that claim to deliver huge returns with little or no risk.
Binance is a cryptocurrency exchange that offers a trading platform for a variety of digital currencies. It was established in 2017 and has its headquarters in the Cayman Islands. In terms of daily trading volume, Binance is presently the largest exchange in the world.
Changpeng Zhao, a developer who had previously designed high-frequency trading software, launched Binance. Binance was founded in China, but due to the country's increasing regulation of cryptocurrencies, it relocated its headquarters to the United States.