Malaysia Announces Enforcement Actions Against Binance

The Malaysian Securities Commission (SC) announced enforcement actions against Binance for “illegally operating a digital asset exchange (DAX)”.

In the SC’s notice, the Cayman Islands-registered Binance Holdings Limited, CEO Changpeng Zhao, as well as the Binance Digital Limited (UK), Binance UAB (Lithuania) and Binance Asia Services Pte Ltd (Singapore) units are mentioned.

According to the press release, the regulator issued a “public censure” to the listed entities and management for continuing to operate illegally in Malaysia. The SC ordered them to “take down the binance.com website and mobile apps in Malaysia within 14 days, starting from 26 July 2021.”

The company must also cease promoting services to local investors and close access to Binance’s Telegram channel.

“Investors are advised not to deal with the illegal DAX […]. We strongly urge owners of active Binance accounts to stop trading on the platform and withdraw all their funds,” the notice says.

Earlier, SC added Binance to a list of entities whose operations do not comply with the law.

On 30 July Bloomberg, citing unnamed sources, reported that India’s Financial Intelligence Unit would probe Binance’s role in a money-laundering case. Previously in violation of foreign-exchange rules they suspected the exchange owned by the company WazirX.

According to the publication, authorities summoned Binance’s leadership for questioning. The agency believes the platform did not collect the necessary information in line with the recommendations of the FATF.

In June, the UK’s Financial Conduct Authority banned Binance Markets Limited from any regulated activity in the country without prior written approval.

The Cayman Islands began a probe into Binance’s operations, Thailand and Hong Kong accused the company of operating without a license, Japan issued another warning.

Polish regulators warned consumers about the risks of dealing with the platform, and Italy and Malta — about Binance’s unregulated activities.

Against the backdrop of regulatory pressure, Binance CEO Changpeng Zhao published a letter detailing the platform’s plans to protect customers and ensure compliance.

Later he said he was seeking a candidate for the post of CEO, but stressed that he is not leaving Binance.

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