Binance is the largest cryptocurrency exchange in the world and has been seen to move towards regulatory compliance. However, the crypto exchange remains at odds with the regulators and has now been banned in Malaysia.
To avoid further complications with regulators, Binance has reportedly closed its lucrative derivatives business in three EU nations.
The crypto enthusiasts are now left to wonder how this will affect the operations of the exchange.
If you are interested in the crypto space and want to purchase top crypto assets like BTC and ETH you can use Binance. However, if you are in the USA then you can opt for Binance’s alternative Kraken and invest in crypto.
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Some Details About the Ban Imposed by Malaysia
Binance might be one of the most prominent exchanges in the world but it seems to be under some scrutiny at the moment. Binance was founded in China and after the Chinese crackdown on mining operations in the country, the exchange has been under investigation by regulators around the globe.
The crypto exchange has been scrutinized on its know-your-customer practices, derivatives trading services and stock tokens.
According to reports, Binance has been issued a warning by the Securities Commission Malaysia to disable its website and mobile application in the country. As per an announcement on July 30th, the crypto exchange was publicly reprimanded by the securities regulator in Malaysia.
The reprimand by Malaysian authorities has been issued against:
- Binance Holdings Ltd. (registered in the Cayman Islands)
- Binance Digital Ltd. (registered in the UK)
- Binance UAB (registered in Lithuania)
- Binance Asia Services Pte. Ltd. (registered in Singapore)
It is also important to know that Malaysia is not the only country to issue a warning or launch an investigation regarding Binance. Other countries include:
- Cayman Islands
- Hong Kong
- United Kingdom
- United States of America
Binance exchange has been reported to step up compliance and reduce its product range. This is why Binance recently announced that its users in three EU nations will not be able to open new futures or derivatives products accounts.
The three EU nations include:
The largest crypto exchange has also been looking to significantly increase the number of members in its compliance team. The exchange is looking to hire former regulators as it can greatly improve communication with the authorities.
According to a Binance spokesperson:
“Binance is ready to assist regulators from around the world and together find the optimal way to set a fair playing field. Consumer protection is important to all of us. We want to create a sustainable ecosystem around blockchain technology.”
What Should Potential Crypto Investors and Traders Know?
Finding a suitable crypto exchange to buy, sell or trade crypto assets is one of the most important things for everyone interested in the crypto space. Choosing a good and secure exchange can make all the difference in crypto investing or trading, especially for novice parties.
Binance is one of the best crypto exchanges every crypto enthusiast should know about. As mentioned earlier, it is the largest cryptocurrency exchange, however, it might be time for it to upgrade in some ways.
In the meantime, you can look for alternative crypto exchanges if you are interested in buying digital assets.
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