Malaysia has completely banned Binance crypto exchange after accusing it of operating illegally in the country. The authority has given Binance a 14 days ultimatum to leave the country.
Binance had been facing crackdowns in the country since 2020 only as it had received its first warning from Malaysian Security Council (SC) to stop operating from the premises of the country. Now that the exchange has received an official ban, it has 14 days from Tuesday to fold up and leave Malaysia.
The exchange has to disable its mobile app, website and stop every other business activity being operated from Malaysia. The Malaysian citizens have also been asked to de-trade from the exchange removing all their assets from the platform.
This is neither the first time that Malaysia has banned a cryptocurrency firm nor the first time that Binance has been banned in a country. Italy, UK, Germany, Poland, Thailand, Hong Kong have already issued a strict warning to the exchange due to one reason or the other in the past.
The exchange has had made a bad name for itself as it has continuously received either warnings or investigations or even an outright ban from countries across the world. The list just keeps getting bigger.
Coming to the first point, Malaysian regulators had published a list of all the digital exchanges that were deemed illegal to operate from within the perimeter of the Malaysian border.
Binance CEO Changpeng Zhao has said that his institution is ready to cooperate with various regulators from different countries to change their negative perspectives about Binance.
The company, however, has taken certain steps to lessen the gravity of the situation. For example, it is planning to reduce the daily withdrawal limit of Bitcoin from 2 to 0.06 BTC. It has also decided to curb the maximum leverage position from 125 times to 20 times only.
Binance has been limiting its business in order to meet regulatory needs and it doesn’t want to see the same situation as Malaysia in other countries. CEO Zhao is very optimistic about the future of Binance in other countries.