The global regulatory crackdown on the world's largest cryptocurrency exchange by volume has intensified, as Malaysia has issued enforcement measures for alleged illegal operations. "Binance Holdings Limited," its CEO Changpeng Zhao, and three affiliated companies have been ordered to suspend "Binance.com" and mobile applications in the country within 14 working days, starting from July 26, according to a statement from Malaysia's Securities Commission issued yesterday, Friday. The decision also includes halting media and marketing activities directed at consumers in Malaysia and imposing immediate restrictions on investors in the country from accessing Binance's Telegram group.
The statement noted that Zhao "received orders specifically to ensure the implementation of the aforementioned directives." A representative for Binance told Bloomberg News that the company has received notice of the injunction, adding that "Binance.com is not operating outside of Malaysia." The representative stated in an email, "Binance adopts a collaborative approach in working with regulators in this emerging industry and takes compliance obligations very seriously."
### Deadline for Closing Open Positions
Separately, the company announced yesterday, Friday, that it plans to terminate the offering of futures and derivatives products in Germany, Italy, and the Netherlands. Users from those countries will no longer be able to open accounts for these products, as the company stated it would give people in those countries 90 days to close open positions. The company indicated a week ago that it would shift from an ambiguous structure without a headquarters, which facilitated its rapid growth, to a regionally-focused structure centered on compliance with the aim of obtaining licenses in various countries. However, this strategy does not appear to have halted the regulatory onslaught against it.
Bloomberg News reported yesterday, Friday, citing sources familiar with the matter, that India's anti-money laundering agency is considering whether Binance has a role in an ongoing investigation related to betting applications. In addition to this restriction, Binance faces investigations from multiple U.S. agencies, as well as actions or investigations from countries such as the UK, Thailand, and Italy.
Gary Woolley, CEO of Crypto Facilities, a regulated derivatives exchange in Europe, stated yesterday, Friday, that one of the overlooked aspects of the latest cryptocurrency bull market is that it has formed a generation of investors who see regulatory compliance as essential. "Cryptocurrency is no longer a strange matter."
