- Binance facing challenges due to the non-fulfillment of regulatory norms in Malaysia.
- The rising speculations and claims by other jurisdictions raising questions on Binance’s formal existence.
Binance the world’s largest cryptocurrency exchange and crypto trading platform by trading volume received the declaration from Malaysia’s Securities Commission (SC) of its unauthorized existence in the country.
As per the latest, July 2020 report on SC investor alert, the Malaysian Security Commission announced the list of unauthorized entities that do not comply with the Malaysian securities law and are working without a registration or license in the country.
The list reveals that Binance is one of the entities “operating a recognized market (cryptocurrency) without authorization from the watchdog.”
Reportedly, the establishment has barred to offer crypto-to-fiat and peer-to-peer crypto/digital assets services in Malaysia as Malaysian Ringgit (basic monetary unit of Malaysia, equivalent to 100 sen). However, the full data is yet to be received by SC on the working conditions for Binance. Though, the regulator notified the public not to invest in the companies those of which mentioned in the list.
Binance’s Troubles to Operate in Other Jurisdictions
This is not the 1st time that Binance has come into the light for operating cryptocurrency exchange and providing digital assets services without authorization.
Earlier, in Feb the global crypto asset platform was caught by the Malta Financial Services Authority (MFSA) on the grounds of similar supervision. The MFSA mentioned that “Binance is not subject to regulatory oversight” as the company is not authorized to operate to offer crypto-focused services in the country.
On July 2nd, Brazil’s regulator the Brazilian Securities and Exchange Commission prohibited Binance to offer derivatives trading services i.e., Bitcoin (BTC) futures contracts in the country. Failing to comply with the ban rules Binance has to bear a daily fine of $186.
The statement from the Superintendent of Relations with the Market and Intermediaries of the Securities Commission of Brazil reads:
“Binance does not hold authorization from this Securities and Exchange Commission to act as a securities intermediary.”