The Securities Commission Malaysia (SC) today took enforcement actions against Binance for illegally operating a Digital Asset Exchange (DAX). Under Sections 7(1) and 34(1) of the Capital Markets and Services Act 2007, 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. In this regard, the public reprimand was issued against Binance Holdings Limited (Registered in the Cayman Islands), its CEO Zhao Changpeng, as well as three other Binance entities, namely Binance Digital Limited (Registered in the UK), Binance UAB (Registered in Lithuania) and Binance Asia Services Pte Ltd (Registered in Singapore).
All four Binance entities have been ordered by the SC to:
a. disable the Binance website (www.binance.com) and mobile applications in Malaysia within 14 business days from 26 July 2021;
b. immediately cease all media and marketing activities, including circulating, publishing or sending any advertisements and/or other marketing material, whether via emails or otherwise, to Malaysian investors; and
c. immediately restrict Malaysian investors from accessing Binance’s Telegram group.
Zhao, as the CEO of Binance Holdings Limited, has also been specifically ordered to ensure that the above directives are carried out.
Investors are advised to stop dealing with and investing through illegal DAX. Those who currently have accounts with Binance are strongly urged to immediately cease trading through its platforms and to withdraw all their investments immediately.
The public is reminded to alert the SC if they come across any suspicious websites or receive any unsolicited phone calls or e-mails offering investment advice and opportunities, especially those that claim to offer high returns with little or no risks.
Actions Taken by Other Regulators on Binance
|
Date |
Regulator/Agencies |
Remarks |
|
March 2020 |
Malta Financial Services Authority |
Issued a warning that Binance is not authorized to offer services in Malta |
|
July 2020 |
Brazil’s Securities and Exchange Commission |
|
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May 2021 |
US Justice Department and Internal Revenue Services |
|
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June 2021 |
UK Financial Conduct Authority |
|
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June 2021 |
Japanese Financial Services Agency |
Issued Binance a second warning that it is not allowed to operate in Japan |
|
June 2021 |
Ontario Securities Commission |
|
|
July 2021 |
Thailand’s Securities and Exchange Commission |
|
|
July 2021 |
Italian Companies and Exchange Commission |
|
|
July 2021 |
Hong Kong’s Securities and Futures Commission (SFC) |
|
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July 2021 |
Lithuania’s central bank |
Issued a warning that Binance is not regulated in the country |
