Malaysia regulator threatens Binance with fines and jail time
Malaysian regulator says Binance is breaking the law
This threatens the exchange with a fine of $ 2.3 million, and its organizers – with prison.
The exchange came to the attention of the authorities after adding the Malaysian ringgit to the list of supported fiat
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The Malaysian Securities Commission claims that the Binance cryptocurrency exchange is not allowed to operate in the country without a license. No one got scared.
The Malaysian Securities Commission said that Binance is violating securities laws and, therefore, its operators are criminally liable and could be deprived of their free for ten years. Yesterday, the regulator added the cryptocurrency exchange to the blacklist and advised investors not to use the platform.
Binance “operates in the market without permission from the SEC,” it said in a statement.
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Malaysian law states that crypto exchanges operating without a license “can be fined up to 10 million ringgit ($ 2.3 million), or sentenced to imprisonment for up to ten years.”.
However, Binance has not stopped providing services to the citizens of Malaysia and is not going to do so. Binance does not intend to cease operations in the country after the site is blacklisted. At least the customer service staff did not receive any orders to this effect, Decrypt reports..
The exchange’s attitude towards regulators has long been known. Earlier, the head of Binance US claimed that they interfere with the adoption of cryptocurrencies. But Changpeng Zhao proposed to regulate cryptocurrency news
In addition, the editorial staff of BeInCrypto previously reported that the Malta regulator was trying to expel the exchange from the country, to which Zhao said that it was not there..
Why Commission Blacklisted Binance
One of the main reasons for the tough position of the regulator may be that the exchange does not have a license to work with a payment gateway that provides the exchange of local currency, ringgit, for digital coins and vice versa. Meanwhile, Binance recently announced ringgit support on its P2P platform..
Currently, only three exchanges are licensed for this type of service: Luno, Sinegi, and Tokenize Xchange. All other companies offering fiat-to-crypto exchange are breaking the law.
In addition, the regulator may not have liked the aggressive advertising of the platform in Malaysia, as well as attempts to issue its own debit card without the approval and license of the Commission..
Apart from Binance, eToro and Fidelity are blacklisted by the regulator. Meanwhile, the regulator is unlikely to be able to do something, since these companies do not have offices in the country. Otherwise, the police would have raided there long ago and everything would have been closed..
Binance is also headquartered in the Cayman Islands, so they are not terribly afraid of Commission threats. Although their sites are available in Malaysia and the regulator has the authority to block sites.
Meanwhile, the Commission warned that Malaysian users are not protected by local legislation in case of problems, so they work on the exchange at their own peril and risk..
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