Binance is Illegally Operating in Malaysia, Regulator Warns


Malaysia regulator is the latest agency to issues a warning against Binance for operating in the country illegally. Meanwhile, India’s AML agency is reportedly planning to investigate the crypto exchange.

July 30, 2021, | AtoZ Markets – The attention of two more countries to the activities of the Binance cryptocurrency exchange became known this Friday.

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

The SC notice mentions Binance Holdings Limited registered in the Cayman Islands, CEO of Changpeng Zhao, as well as divisions of Binance Digital Limited (UK), Binance UAB (Lithuania), and Binance Asia Services Pte Ltd (Singapore).

Malaysia issues warning against Binance

According to a press release, the regulator issued a “public reprimand” to the listed organizations and management for continuing illegal activities in Malaysia. SC obliged them to “shut down the binance.com website and mobile apps in Malaysia for 14 days starting on July 26, 2021.”

The company should also stop promoting services to local investors and close their access to Binance’s Telegram channel.

Investors are advised not to work with illegal DAX […]. Holders of active accounts on Binance are urged to stop trading through the platform and withdraw all their funds,” the notice says.

Previously, SC added Binance to the list of legal entities whose activities do not comply with the law.

India’s AML agency will investigate Binance

On July 30, Bloomberg, citing unnamed sources, reported that India’s Anti-Money Laundering Agency will conduct an investigation into Binance Holdings’ role in the money laundering case. Earlier, the WazirX exchange owned by the company was suspected of violating currency rules.

According to the publication, the authorities summoned the management of Binance for questioning. The Agency believes that the platform did not collect the necessary information in accordance with the FATF recommendations.

As a reminder, in June, the UK Financial Conduct Authority (FCA) banned Binance Markets Limited from any regulated activity in the country without prior written approval.

Polish regulators warned consumers about the risks of interaction with the platform, while the Italian regulator and the Central Bank of Lithuania warned about unregulated activities of Binance.

Amid pressure from supervisory authorities, the CEO of the exchange, Changpeng Zhao, said he’s willing to step down from his role and that he was looking for a candidate to take over from him. He, however, stressed that he was not leaving Binance.

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