Earlier this week, the CEO of Binance tweeted that the exchange is coming to terms with various regulators and ensuring due legal compliance. Hence the reason the exchange adjusted its leverage limit, withdrawal limit, and integrated a tax reporting system.
However, the Securities Commission Malaysia has “reprimanded” Binance for illegally operating within the Malaysian jurisdictions. According to the public reprimand, every exchange should register in accordance with Sections 7(1) & 34(1) of the Malaysian Capital Markets and Services Act.
Because of this, the SCM has ordered Binance to stop its business within 14 business days from July 26. Meaning that Binance should bring down its website and mobile app in Malaysia on or before the stipulated time.
In addition, they should also restrict Malaysians from accessing the Binance telegram group. On the other hand, the government had warned her citizens from using the exchange. And even to report if they notice any subsequent traces of the exchange.
“Those who currently have accounts with Binance are strongly urged to immediately cease trading through its platforms and to withdraw all their investments immediately,” reads the public reprimand.
In their address, the SCM addressed this reprimand to the Binance companies within its jurisdictions, those registered in nearby countries, and even the CEO of Binance – CZ.
On a final note, the Securities Commission Malaysia ordered CZ to specifically report how far the exchange has complied with the new regulations.
As at the moment of journaling this report, neither Binance nor its CEO has made a public address to the Malaysian regulators.