The Securities Commission Malaysia (SC) announced an enforcement action against Binance for illegally operating a Digital Asset Exchange (DAX). The Securities Commission has said Binance is still operating illegally despite being listed on an alert list since July 2020.
The regulator said under Malaysia’s capital market laws, all DAX operators must be registered as recognized 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 has taken enforcement action against four affiliated entities, as well as the firm’s CEO Changpeng Zhao (CZ). The four Binance entities are Binance Holdings Limited, Binance Digital Limited, Binance UAB, and Binance Asia Services Pte Ltd.
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“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. In addition, all four entities must immediately cease media and marketing activities, and immediately restrict Malaysian investors from accessing the crypto exchange’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,” the statement said. It also added 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.
