The Securities Commission of Malaysia or SC is the central ombudsman in the region. Recently, the SC issued cease and desist orders with high priority for all Binance related activities. By the decree of the enforcement order, SC has stopped Binance Holdings and its three subsidiaries, i.e., Binance Digital, Binance UAB, and Binance Asia Services, from commencing operations.
All of these organizations have also received directives to deactivate the website and mobile application of Binance. If Binance officials fail to go offline before 8 August, the SC reserves rights to prosecute them to the full extent of the law. Binance cannot engage in any promotional or marketing activity with immediate effects.
According to financial legislature experts, Binance has breached the Capital Markets and Services Act of 2007. The largest crypto exchange platform in the world is also instructed to limit the number of investors in a Telegram group. As per SC, if Binance wishes to commence operations once again, it is necessary to file for registration as a Recognized Market Operator or RMO.
Changpeng Zhao, CEO of Binance, recently told the media in a press release that Binance is following all the requirements that are issued by SC. On the other hand, the regulatory agency is also instructing its consumers to stop using the DAX. SC has asked the investors in Malaysia to stop using their accounts that are registered at Binance and sold their holdings before the expiration date in August.
Indian Government is Prosecuting Binance for Money Laundering Charges
Binance is facing regulatory pressure from several nations like Japan, Poland, Italy, Thailand, Cayman Islands, and others. However, the Indian media cited anonymous sources that claim that Binance is under investigation for money laundering charges. More specifically, the regulators in India are searching the Binance application for evidence related to laundering probes.
Binance has been making a lot of changes in its operating methods to get address these complaints. The transaction limit for non-verified members has been reduced by 95%. Binance has also halted trading tokenized stocks. The Binance management is currently working on a new Tax tool to become a more regulatory-friendly enterprise.