Binance is not recognised by SC Malaysia. How now?

The Securities Commission Malaysia (SC) on 30 July 2021 announced enforcement actions against Binance for illegally operating a Digital Asset Exchange (DAX) in Malaysia.

Details on the announcement here.

As Binance must disable both website and mobile application within 14 days from 26 July 2021 to Malaysian.

This clampdown is most probably due to the recent multiple warnings in some jurisdictions.

Where some of its operating  has been banned due to its failure to register with local regulators. Such as Hong Kong, Italy, Germany, Thailand, Japan, US and UK.

Most Malaysian will be panic and wonder if they should withdraw all their investment in Binance and cease trading from their platforms..

Any companies in Malaysia will need to be registered and regulated by the SC if they are dealing with the followings :-

• Securities;
• Derivatives;
• Fund Management;
• Advising on corporate finance;
• Investment advice;
• Financial planning; and
• Dealing in private retirement schemes

My thoughts on this is that Binance wouldn't just disappear like that.

WHY?

Binance is currently one of the world's biggest exchange in terms of daily trading volume.

According to data from CryptoCompare. The trading volumes in June were $662 billion, up almost ten-fold from July 2020.

However, it is not clear where it is based.

Binance has long touted its decentralized operations, where it has no formal headquarter.

But widely reported to be registered in the Cayman Islands.

Crypto trading is generally unregulated in most of the countries.

Therefore, regulators only have limit jurisdictions on these companies operations and can only warn investors of the risk involved.

The good news is that the CEO of Binance, Changpeng Zhao (CZ) has address the recent compliance issues and unveils the company's regulatory compliance plan.

So for me, I will not transfer the funds if its only 5% or less from my entire investment portfolio.

And from this 5% it is distributed to other exchanges and not only in Binance.

However if you are still worried with your funds in Binance.

You may consider opening an account with one of these 3 Companies that are registered and recognized DAX operator in Malaysia by the SC listed below and transfer from Binance.