Malaysian regulator orders Binance to disable its website and mobile apps

Malaysia’s Securities Commission (SC) has ordered crypto exchange Binance to disable its website and mobile apps in the country.

Announcing an enforcement action on Friday, the SC said Binance was operating illegally in Malaysia despite being included in an investor alert list in July 2020. The SC therefore issued a public reprimand against Binance Holdings Limited, its CEO Changpeng “CZ” Zhao, and three other entities — “Binance Digital Limited (registered in the UK), Binance UAB (registered in Lithuania), and Binance Asia Services Pte Ltd (registered in Singapore).”

The four entities have been ordered by the SC to disable Binance’s website – www.binance.com – and its mobile apps in Malaysia within 14 business days from July 26. The regulator said Zhao had been given the specific order to ensure the directive is carried out.

When reached for comment, a Binance spokesperson told The Block, “We are aware of SC’s advice and can confirm that Binance.com does not operate from Malaysia.”

It is unclear if this comment means that Binance.com will continue to be accessible in Malaysia despite the SC order. The spokesperson declined to comment further.

Binance made a similar comment when the UK’s Financial Conduct Authority (FCA) ordered Binance Markets Limited (BML) – Binance’s UK entity – to cease undertaking any regulated activity in the country last month. The FCA order, however, did not impact Binance.com’s offerings as BML does not operate the website. The FCA only has jurisdiction over BML and none of the other Binance entities, as The Block reported at the time.

The Malaysian regulator also ordered the four Binance entities and Zhao to immediately cease all media and marketing activities with Malaysian investors and immediately block Malaysian investors from accessing Binance’s Telegram group.

“Investors are advised to stop dealing and investing through the illegal DAX [Digital Asset Exchange]. Those who currently have accounts with Binance are strongly advised to immediately stop trading through its platforms and withdraw all their investments immediately,” the regulator said.

Malaysia joins the list of global regulators that have recently issued warnings or taken action against Binance, including those from the US, UK, Italy, Japan, Thailand, Poland and the Cayman Islands .

Amid regulatory crackdowns, Binance recently ceased its equity token trading offering. Earlier today, the exchange also closed its crypto derivatives trading offering in three European countries – Germany, Italy and the Netherlands. Binance further stated that it plans to reduce supply in the European region in the future.

mobile apps