With every passing day, the situation for the largest cryptocurrency exchange is becoming more difficult to handle. No matter how much Binance may try to deal with the regulatory issues, it keeps getting shut off one country after another.
The country that has recently kicked out Binance is Malaysia. The reports suggest that the regulatory authority from Malaysia took the action against Binance. As a result, the cryptocurrency exchange has been officially ordered to shut down its operations in Malaysia.
Similar to other regulatory authorities currently scrutinizing the exchange over regulatory policies, the Malaysian regulators also went with the same approach. The report suggests that the regulatory authorities from Malaysia accused the cryptocurrency exchange of operating illegally on its soil.
The regulators claimed that the Binance exchange had been operating in the country and providing users with cryptocurrency trading services illegally. According to the regulatory authority, the exchange had not acquired any authorization or approval in order to operate within the country.
According to the media sources, it was the Securities Commission (SC) of Malaysia that made the decision of shutting down Binance in the country. The announcement around the banning and shutdown of the exchange was made by the Securities Commission on Friday, July 29, 2021.
In the announcement, the Securities Commission confirmed that Binance had been served with the public reprimand. In the reprimand, the Securities Commission claimed that the exchange had been providing services illegally and was required to cease all crypto-related operations at once.
Among all other regulatory authorities, the Malaysian regulatory authority has turned out to be the most aggressive one. The exchange did not give the exchange any opportunities of explaining itself or providing any arguments for its actions.
The orders were clear to the exchange and it had to do it right away. Now, Binance has to shut down its services completely in the country at the earliest.
The Securities Commission claimed that in the past, it had sent over several warnings to the exchange over its operations in the country. However, the exchange did not seem bothered with any of the warnings as it never provided any explanation or made contact with the regulator.
This is something that can also be confirmed by crypto-reporting firms. It was back in July of 2020 when several crypto-reporting firms had published the statement made by the Securities Commission of Malaysia. In the statement, it was made clear by the SC of Malaysia that Binance was not authorized to operate in the country.
This goes to show that the exchange was using its market reputation and presence to serve the customers without acquiring approval from Malaysian authorities. Now, the exchange seems to have shut down the only door of its return to the Malaysian markets by not cooperating with the Malay regulators in the first place.