Binance is in talks with Malaysian regulators about a potential licensed return to the country, more than five years after authorities ordered the cryptocurrency exchange to cease local operations.
The company has spent the past 10 months engaging the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) on a possible licensed business model, Bloomberg reported.
A Binance spokesperson confirmed the discussions on 31 October, saying they focused on the viability and structure of a licensed business in Malaysia.
The exchange did not disclose the type of license it is seeking. Malaysian authorities continue to block access to its website and mobile applications.
Binance’s regulatory history in Malaysia
In July 2021, the SC ordered Binance to cease operating in Malaysia after finding that it had been running a digital asset exchange without authorisation.
The regulator also directed Binance to stop its media and marketing activities and restrict Malaysian investors from accessing its Telegram group.
Although the SC removed Binance from its Investor Alert List in 2024, it added the exchange back on 8 October without publicly explaining the decision.
In July, the Ministry of Finance confirmed that Binance remained unlicensed in Malaysia and that its website and app were still blocked.
Security breach and concerns over ringgit transactions
The discussions come as Binance faces scrutiny following a security breach on 29 October that resulted in approximately US$6.3 billion in stolen crypto assets, making it the largest known crypto hack.
The exchange temporarily suspended withdrawals but resumed them in phases on 1 November. Binance said it had replenished approximately 95% of the affected assets and would absorb the losses.
Separately, Bagan MP Lim Guan Eng wrote to the SC in September, urging it to investigate whether Binance’s peer-to-peer (P2P) platform was facilitating ringgit transactions through advertisements denominated in other currencies.
His office released the letter on 31 October following the security incident.
Binance said it had voluntarily disabled a Papua New Guinea kina marketplace on its P2P platform that was unofficially pegged to the ringgit as part of its engagement with the SC.
The company said the latest complaint involved a single advertisement posted by a non-Malaysian user on its Romanian leu marketplace.
It added that no other products on its platform were pegged to the ringgit or offered as substitutes.
“We take this seriously, but we do not believe an isolated case like this reflects any sustained effort to circumvent Malaysian law,”
the spokesperson said.
Binance said it remains committed to working with Malaysian regulators to offer its services in compliance with local requirements.
Featured image credit: Edited by Fintech News Malaysia, based on image by skirgurem and user8531954 via Magnific
