Binance and CZ Faces Enforcement Action from SC For Illegal Crypto Activities in MalaysiaJuly 30, 2021
The Securities Commission Malaysia (SC) today announced enforcement actions against Binance for illegally operating a crypto exchange in Malaysia. The regulator ordered Binance to immediately disable access to its website and app within 14 days from 26th July 2021, immediately cease all forms of media and marketing to investors and restrict Malaysian’s access to the Binance Telegram Group.
The order is issued against its CEO Zhao Changpeng as well as Binance’s four registered entities in the Cayman Islands, UK, Lithuania, and Singapore. The regulator deems the public reprimand necessary as Binance has continued to operate illegally in Malaysia despite being included in the SC’s investor alert list in July 2020.
Securities Commission joins a chorus of regulators around the world cracking down on Binance for carrying out regulated activities without meeting compliance requirements. In a media statement issued Tuesday, Zhao Changpeng said that he was willing to step down from his role as it seeks to set up several regional headquarters and meet licensing requirements.
Investors are advised to stop dealing with and investing through illegal crypto exchanges. The SC urges those who currently have accounts with Binance to immediately cease trading through its platforms and to withdraw all their investments immediately.
Securities Commission Malaysia has been seen ramping up enforcement activities against unregulated operators of late, in April, the regulator blocked access to P2P crypto platform Remitano.
In an interview with Fintech News Malaysia, SC’s Executive Director said that they are ramping up enforcement activities against unregulated platforms as they are seeing a rise in scams and illegal activities in 2020.