MFSA: Binance No More Authorized to Operate in Malaysia
Recently, The Malta Financial Services Authority (MFSA) issued a statement announcing that Binance, one of the world’s largest private equity firms, is no longer authorized to operate in the Malta region. Therefore, the notification states that the Company is not subject to any supervision by the BFSA.
Malaysia’s Securities Commission (SC) has suspended crypto exchange trading in Binance over its alleged breach of the country’s financial regulations. Binance operated in the recognized markets of Malaysia, Indonesia, and Singapore without authorization, the regulator said. In Malaysia, Binance offers peer-to-peer crypto trading for Malaysian ringgit and provides a range of services such as peer-to-peer trading, cryptocurrency trading, and currency trading.
It is noteworthy that the announcement of the MFSA does not mention that Binance has violated regulatory requirements. It is just that certain rules that were not followed and steps had to be taken over them to behave.
The regulator said it should not encourage the public to invest in companies or individuals that are not authorized or approved by the authority. Although, it’s not clear whether Binance will continue to offer support for the Malaysian ringgit or whether it must stop supporting the same and other currencies such as the Malaysian dollar.
The stock exchange declined to comment on its support for the Malaysian ringgit and its role in the country’s financial system when reached. Block has asked SC for comment on the legality of Binance’s operations in Malaysia and compliance with the country’s financial regulations and will update this story when we hear back.
Earlier this month, Brazil’s Securities and Exchange Commission also said Binance was unauthorized and had banned it from selling derivatives in the country.
However, the regulator added that it had concluded that Binance’s activities in Malta do not fall within the scope of MFSA’s regulatory oversight. The supervisory authority explicitly stated that Binance’s claim that it was a company based in Malta was factually incorrect.
This is consistent with the Company’s previous statements to the Securities and Exchange Commission (SEC) and the Financial Services Authority (FSA).
The Exchange has also stated that it does not have a license to operate in Malta and is not subject to the supervisory control or supervision of the MFSA, as indicated by B Finance.
