Securities Commission of Malaysia (SC) announces enforcement action against Binance

The Securities Commission of Malaysia (SC) formally announced enforcement action against Binance for illegally operating a digital asset exchange (DAX)."

The SC notice mentions Cayman Islands-registered Binance Holdings Limited, CEO Changpeng Zhao, as well as units of Binance Digital Limited (UK), Binance UAB (Lithuania) and Binance Asia Services Pte Ltd (Singapore). According to the press release, the regulator issued a "public reprimand" to the listed entities and management for continuing illegal activities in Malaysia. The SC ordered them to "disable the binance.com website and mobile apps in Malaysia within 14 days, beginning from July 26, 2021":

The Securities Commission of Malaysia (SC) today announced enforcement action against Binance for illegally operating the 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 by SC as Recognized Market Operators (RMO).

Accordingly, SC issued a public reprimand to Binance for continuing to operate illegally in Malaysia, despite the fact that it was placed on the SC 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 organizations have been ordered to SC:

- Disable the Binance website (www.binance.com) and mobile apps in Malaysia within 14 business days from July 26, 2021;

- immediately cease all media and marketing activities, including distributing, publishing or sending any advertisements and/or other marketing materials, whether by email or otherwise, to Malaysian investors;

- and immediately restrict Malaysian investors' access to the Telegram Binance group.

Zhao, as CEO of Binance Holdings Limited, has also been specifically ordered to enforce the above directives.

Investors are advised to stop engaging and investing through the illegal DAX. Those who currently have accounts with Binance are urged to immediately stop trading through its platforms and immediately withdraw all of their investments. The public is reminded to alert SC if they encounter any suspicious websites or receive any unsolicited phone calls or emails offering investment advice and opportunities, especially those claiming to offer high returns with little or no risk.

Questions or complaints can be directed to SC at +603 6204 8999 or email: [email protected]

We should not forget that just the other day it became known that Binance is looking for a new CEO to replace Changpeng Zhao (CZ), the rats are slowly leaving their leaky ship.

31.07.21

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