Binance is known to have raised the ire of global regulators. But its tryst with the Malaysian crypto ecosystem isn’t over.
Binance’s strategic participation in the Malaysian trading platform
The world’s largest cryptocurrency exchange, Binance, is making a comeback in Malaysia with a stake in MX Global, a regulated digital asset trading platform. According to the official press release, the newly injected capital will be deployed to build brand awareness, onboard more high-quality talent and develop new features within Malaysia’s regulatory framework.
For the uninitiated, MX Global is one of the four Recognized Market Operator-Digital Asset Exchange (RMO-DAX). In July last year, the trading platform fetched full approval by the Securities Commission Malaysia (SC).
Commenting on Binance’s investment, Dato’ Fadzli Shah, CEO of MX Global, said:
“MX Global aspires to be the preferred liquidity platform for digital asset or cryptocurrency investors and token issuers locally and internationally.
Binance’s cooperation will not only help us achieve this goal, but should also provide us with the most capital-efficient opportunity to align and compete with other global players in the industry. We will continue to build a safe, simple and real digital asset ecosystem for our customers.
Binance’s Regulatory Woes
In July 2021, the SC took enforcement action against Binance for allegedly operating illegally in the country. Other regulatory watchdogs claimed earlier that the exchange functioned without the proper licensing as a Digital Asset Exchange but was not registered under Sections 7(1) and 34(1) of the Capital Markets and Services Act 2007. As a result, Binance had to suspend its services in the region.
Additionally, Dutch and Japanese regulators also issued warnings against the company that it was doing business without registration. Even the Cayman Islands Monetary Authority and the Italian securities regulator have declared that the exchange is not authorized to operate in their jurisdictions.
Despite the hurdles, Binance’s expansion plans continue. For instance, reports emerged indicating that Binance was eyeing Russian expansion.
It has managed to forge major partnerships, including with SM Entertainment’s subsidiary, SM Brand Marketing, and K-pop leader YG Entertainment Inc. (YG) just this month. In yet another development, reports have suggested that the crypto exchange has agreed to make a $200 million strategic investment in the 104-year-old magazine – Forbes.
