SC takes enforcement actions against Binance for illegally operating dax in Malaysia

KUALA LUMPUR, July 30 -- The Securities Commission Malaysia (SC) has taken enforcement actions against Binance Holdings Ltd, which is registered in the Cayman Islands, for operating a digital asset exchange (DAX) illegally in Malaysia.

The regulator said under Malaysia’s capital market laws, all DAX operators must be registered as recognised market operators (RMO) by the SC.

“Accordingly, the SC has issued a public reprimand against Binance for continuing to operate illegally in Malaysia despite being included in the SC’s investor alert list in July 2020,” it said in a statement today.

The SC said a public reprimand has been issued on Binance, its chief executive officer Zhao Changpeng, as well as three other Binance entities, namely Binance Digital Ltd, which is registered in the United Kingdom, Binance UAB, which is registered in Lithuania, and the Singapore-registered Binance Asia Services Pte Ltd.

“All four Binance entities have been ordered by the SC to disable the Binance website (www.binance.com) and mobile applications in Malaysia within 14 business days from July 26, 2021,” it said.

They are also ordered by the SC to immediately cease all media and marketing activities, including circulating, publishing or sending any advertisements and other marketing materials, whether via emails or otherwise, to Malaysian investors, as well as to immediately restrict Malaysian investors from accessing Binance’s Telegram group.

“Zhao, as the CEO of Binance, has also been specifically ordered to ensure that the above directives are carried out, and investors are advised to stop dealing with and investing through illegal DAX,” it said, adding that those who currently have accounts with Binance are strongly urged to immediately cease trading through its platforms and to withdraw all their investments immediately.

-- BERNAMA