Binance joins list of unauthorized companies operating in Malaysia

Getting your Trinity Audio player ready...

The Malaysia Securities Commission (SC) has added Binance to its list of unauthorized websites, investment products, companies, and individuals.

The SC has stated that Binance is “operating a recognized market without authorization from the SC” and advises Malaysian citizens “not to make any investment with companies/individuals that are not licensed or approved by the SC.”

Binance’s latest ban

Malaysia is the latest country to announce that Binance is operating without the necessary registration or licenses. Earlier this month, Brazil announced that the digital currency platform had not obtained the necessary authorization to operate a digital currency derivatives exchange in Brazil, ordering it to “immediately suspend the broadcasting of any public offering of securities intermediation services, directly or indirectly, including through the use of internet pages, applications or social networks.”

Before Brazil’s ban, Malta also made an announcement saying that contrary to popular belief, Binance was not authorized or registered to operate in the country.

Legislation is coming

Malaysia denouncing Binance’s domestic operations is the latest example of a government making it clear that digital currency platforms need the necessary licenses to operate in their country. 

When it comes to Binance, it has been governments making announcements requesting that Binance stop operating in their country. On the other hand, BitMEX has taken it upon themselves to be the first mover when trying to mitigate the likelihood of a government crackdown on their operations. BitMEX has been sending users living in certain areas of the world warnings saying that their country is prohibited from trading on BitMEX. Beyond the warning, BitMEX is geo-blocking users and making it very difficult, if not impossible, to make trades on the platform if they live in a prohibited area.

When you consider the actions that governments are taking against exchanges and the actions that exchanges are taking to avoid government scrutiny, it becomes clear that governments have their eye on digital currency exchanges. That being said digital currency exchanges need to abide by existing laws, otherwise, they will have to cease and desist.