Binance Malaysia operations have been classified as unauthorized by the Securities Commission Malaysia. The regulator also added the cryptocurrency in the unauthorized entities list, thereby making the operations unlawful.
As per the Securities Commission of Malaysia, Binance does not have requisite authentication to run trading operations in the recognized market. The current Malaysian law mentions that a cryptocurrency exchange must seek registration under the Digital Assets Exchanges category. Once the registration application is submitted, the SC gives nine months to the platform to meet the appropriate regulatory guidelines.
Currently, Tokenize, Luno, and Sinegy are the only three cryptocurrency exchanges that have secured regulatory clearances from the Malaysian Securities Commission.
Binance Malaysia operations in jeopardy
Earlier in March, Binance announced its plans to release the crypto debit card in South East Asia, especially in Malaysia. The country was foremost in its debit card launch timeline.
The crypto exchange introduced the Malaysian Ringgit in March this year. As of writing, the Malaysian Ringgit is still supported on Binance. It remains to be seen how long the Ringgit support lasts in case Binance Malaysia operations are suspended long term.
Regular face-offs with various regulators
Binance is having a hard time with the regulatory authorities across the globe. Before Binance Malaysia operations issue, it was already flagged by numerous countries for not running crypto trading operations without seeking regulatory clearances.
Earlier in June, Binance was banned by the Brazilian regulator from providing BTC futures contracts. In February this year, Malta issued a clarification with regard to the Binance’s country of registration being Malta. The Malta Financial Services Authority said Binance operations are not authorized by the country’s regulator, and thus, it does not come under the MFSA oversight.
The biggest mystery is perhaps the location of Binance headquarters. Most likely country of registration is Cayman Islands and Seychelles. However, Binance Changpeng Zhao has publicly stated that he does not believe in an outdated physical office building concept.