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 Stake in Malaysian Trading Platform
The world’s largest cryptocurrency exchange, Binance, is making a comeback in Malaysia with an equity investment in MX Global – a regulated digital asset trading platform. According to the official press release, the new capital infused 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 the investment by Binance, Dato’ Fadzli Shah, CEO of MX Global, stated,
“MX Global aspires to be the preferred liquidity platform for the digital asset or cryptocurrency investors and token issuers locally and internationally.
The cooperation of Binance will not only support us in achieving this goal but should also provide the most capital-efficient opportunity for us to align and compete with other global players in the industry. We will continue building a safe, easy, 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.
Besides, Dutch and Japanese regulators also issued warnings against the company that it was doing business without registration. Even the Cayman Islands Monetary Authority and Italy’s securities regulator said 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 managed to score some important partnerships, including SM Entertainment’s subsidiary company SM Brand Marketing and K-pop leader YG Entertainment Inc. (YG) this month alone. In yet another development, reports suggested that the crypto exchange agreed to make a $200 million strategic investment in the 104-year old magazine – Forbes.