Binance to exit Malaysia; Indian authorities initiate a probe

Key Takaways

• Malaysia joins the list of countries that have banned Binance operations
• Indian Authorities order probe into Binance subsidiary WazirX
• The Bull run of BNBcomes to an end

YEREVAN(CoinChapter.com) – Binance’s worries are far from over. Having maintained an impressive upward trend since the 21st of July, it took new blows from Asia.

Two Asian giants, Malaysia and India, jumped on the exchange’s worry-wagon. In separate moves, the two Asian economies sent strong messages to the company. Binance is neck-deep in trouble.

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Malaysia asks Binance to pack up

Malaysia’s securities commission, the Suruhanjaya Sekuriti Malaysia ordered cryptocurrency exchange Binance to halt its operations in Malaysia. It gave the company 14 days to wind up the operations of Binance Holdings and three other global entities under its ownership: Binance Digital, Binance UAB, and Binance Asia Services. 

The SC is accusing the exchange of illegally operating a digital asset exchange in Malaysia.

Media Release: SC Takes Enforcement Actions on Binance for Illegally Operating in Malaysia.

To read media release👉https://t.co/4fO5bHF9VN pic.twitter.com/bHxEKJyEDG

— SC Malaysia (@SecComMY) July 30, 2021

As per the ruling, the exchange must disable the company website in the country. Additionally, it must discontinue the operation of its mobile apps in Malaysia by the 8th of August, 2021. 

Other than allowing Malaysian investors to join its Telegram group, the controversial exchange cannot carry out any other operation in the country. In addition, the Securities Commission instructed the exchange to refrain from promoting its products and services through all media channels.  

The Commission accused them of violating the Capital Markets and Services Act 2007. Before offering trading services in Malaysia, a cryptocurrency exchange must register as Recognized Market Operators (RMO) with the SC.

Having ordered Binance CEO Changpeng Zhaoto to ensure that the company carries out its directives, the SC issued a warning to investors.

“Investors are advised to stop dealing with and investing through illegal DAX. Those who currently have accounts with Binance are strongly urged to immediately cease trading through its platforms and to withdraw all their investments immediately.” 

the warning reads. 

The SC directive should come as no surprise. Last year, the commission had warned, that Binance was operating without registration. The exchange’s name was also featured on the Investor Alert List of 2020. 

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Indian authorities to probe Binance subsidiary 

While Malaysia joined the list of countries where Binance is no longer welcome, India may soon join them too. According to the Times of India. India’s Enforcement Directorate has summoned the company executives for questioning in an ongoing investigation involving illegal betting apps. 

ED summons crypto exchange Binance in betting app laundering probe https://t.co/6lPfEWdxaq

— TOI Business (@TOIBusiness) July 30, 2021

The Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance, Government of India. Its functions include enforcing the following laws: – the Foreign Exchange Management Act, 1999 and the Prevention of Money Laundering Act of 2002. 

Binance denied receiving such summons, claiming that WazirX had received it, not them. WazirX is a cryptocurrency exchange in India that Binance acquired in 2019. India is probing betting apps run by Chinese operators which allegedly collected over $134 million and laundered a part of it through WazirX. 

The company clarified this in a statement.

“We did not receive any summons in June or July of this year. As per available info in the public domain, the summons was directed to only WazirX”, 

the statement reads.

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A Bull stop for Binance? 

While the BNB has been rather bullish for the past 10 days, the news of it getting flagged in Asia seems to be spelling a disaster. Not long ago, it pulled out an impressive run despite being ditched by hedge funds. Its in-house token, the BNB exploded, reaching $348. Ever since it has maintained an upward trend. Until now.

As the news spread, bears seemed to regain control of the chart. A red candle intercepted the bull run. 

If the exchange continues to bet hit left, right and centre, it may have to look for a new CEO. CEO Changpeng “CZ” Zhao recently said he’s ready to step down for someone with more regulatory experience to replace him.

Meanwhile, earlier this year, former BitMEX Chief Executive Officer Arthur Hayes turned himself in with the U.S. authorities. He had allegedly failed to take steps to prevent traders from using his cryptocurrency exchange in money laundering activities. WazirX and its owners should take lessons from BitMEX’s story. 

The writing is clear on the wall. Zhao’s company should either follow regulations or prepare for the worst.