The Securities Commission Malaysia (SC) announced that it is taking enforcement actions against the cryptocurrency exchange, Binance. The financial regulatory body accused Binance of illegally running its Digital Asset Exchange (DAX) services in Malaysia.
As a quick primer, Binance is not officially registered as a Recognized Market Operator (RMO) within the country and as such, is in violation of Sections 7(10 and 34(1) of the Capital Markets and Services Act 2007.
In conjunction with the reprimand, the SC issued cease-and-desist orders against five entities: Binance Holdings Limited, Zhao Changpeng, CEO of Binance, Binance Digital Limited, Binance UAB, and Binance Asia Services. To that end, the SC has ordered Binance to disable its official website and all corresponding mobile apps in Malaysia, within 14 business days starting 26 July 2021.
In addition, the cryptoexchange must also cease all media and marketing activities in Malaysia immediately. This includes circulating, publishing, or sending of any advertisements and marketing material to investors in Malaysia. Lastly, it must actively restrict Malaysian investors from accessing its official Telegram group.
At current, only three DAX in Malaysia have permission to operate in Malaysia. The first and most popular of the three is Luno, while the other two entities are SINEGY and Tokenize.
(Source: Securities Commission)
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