Binance has been blacklisted as a company that does not have a licence to operate in Malaysia because it does not have the authorization of the SC (Securities Commission).
This list immediately clarifies who is on it and why, with a series of entries identifying the type of problem encountered:
- Carry on capital market regulated activities without a license or registration. SC regulates the following capital market activities:
- Dealing in securities;
- Dealing in derivatives;
- Fund management;
- Advising on corporate finance;
- Investment advice;
- Financial planning;
- Dealing in private retirement schemes
- Provide services as a market operator;
- Issue or offer securities without proper approval, authorization or recognition.
Binance falls into the category of those who do not have a licence to operate on the whole territory, which also entails a hefty fine if the relevant platforms do not cease to operate.
Only last week, the SC had banned practically all the crypto ATMs in the country, because none of the companies operating with these instruments had the appropriate license, thus they were not allowed to trade crypto assets.
Even in this case, for those who do not adhere to the decision, there is a penalty of as much as €2 million.
If we scroll through the list we can see that the same situation applies to eToro, and also a company that has a very famous name, OneCoin, which proves that it is still very much active in that country. Not even Bitcoin automatic trading software (or so-called Bitcoin Revolution and Bitcoin Loophole) can operate in Malaysia.
Binance, problems not only in Malaysia
This is not the first problem for Binance: also in Brazil it had to stop trading futures products.
At this point, we can see how in Malaysia crypto and blockchain are not seen as an opportunity but something to regulate as much as possible, in order to give more security to users. These rules in many cases must be applied to those who operate in the sector and they leave no room for manoeuvre.