Malta-based cryptocurrency exchange, Binance has been venturing into several countries over the past year. However, Malaysian regulators don’t seem to be welcoming as the exchange has been classified as an unauthorized platform in the country.
A Blockade Towards Global Expansion?
Prominent cryptocurrency exchange, Binance has constantly remained in the headlines following the platform’s developments and ventures. Global expansion was definitely on the cards for the exchange as it entered several new markets. However, seems like not every country is as welcoming as expected.
Malaysia is one such country as the Securities Commission [SC] of the region categorized Malta-based Binance as an unauthorized company. The Malaysian regulator on its website shared a list of ” unauthorized websites/investment products/companies/ individuals.” Binance was one of the recent additions to the list. The SC pointed out that the platforms that made it to the list were noncompliant with the rules put forth by the regulator.
The Malaysian regulator revealed that the Changpeng Zhao-led exchange was under the gun for “operating a recognized market without authorization from SC.”
Regarding the same, the SC urged the citizens of Malaysia to steer clear of platforms that do not fall under the radar of the regulator. The Securities Council wrote,
“The public is advised not to make any investment with companies/individuals that are not licensed or approved by the SC.”
The world’s largest cryptocurrency exchange wasn’t the only one of the list. More than 20 digital asset companies were under SC’s list of unauthorized platforms operating in Malaysia. This list included Bitcoin Loophole, Blockchain Forest Sdn Bhd, Bitcoin Revolution, Kazuki Coin & Pay along with several others.
This isn’t the first time Binance has been caught up with a country’s financial regulators. Just this month the Securities and Exchange Commission of Brazil that goes by the name CVM in the country issued an order that refrained Binance from providing derivative products to the citizens of Brazil. The Malta-based cryptocurrency exchange was also categorized as an unauthorized platform by the Malta Financial Services Authority. Back in February 2020, the financial regulator issued a public statement that it “reiterates that Binance is not authorized by the MFSA to operate in the crypto currency sphere and is therefore not subject to regulatory oversight by the MFSA.”