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More troubles for Binance as the startup ordered to cease operations in Malaysia

Malaysia is the latest to join the countries taking action against Binance as its market regulator has ordered the company to cease operations in the country.

The cryptocurrency exchange is accused of illegally operating in the country by the Securities Commission (SC) of Malaysia.

The commission has issued a public reprimand against the firm, its CEO Zhao Changpeng, and its three entities registered in the UK, Lithuania, and Singapore.

Also Read: How Binance acquired 35 per cent market share in a year with its new crypto derivatives line

All these four entities have been ordered to cease operations, including their media and marketing activities in Malaysia, within 14 business days from 26 July 2021.

It means that the exchange can no longer circulate, publish, and send advertisements and other marketing material to Malaysian investors.

The market regulator has also advised investors to stop dealing with and investing through Binance. In addition, people who have accounts with the exchange have been warned to cease trading through its platforms and withdraw their investments immediately.

The order also restricts Malaysian investors from accessing Binance’s Telegram group.

Also Read: Thailand’s Brooker Group to invest US$48M into Binance, Uniswap, other DeFi projects

Binance has been under immense pressure from the market regulators of various countries across the globe. Last month, Italy’s financial regulator issued a warning against Binance after it was found out that the platform was not authorised to offer services in the country.

Apart from Italy, countries like Germany, Poland, Japan, Thailand, Singapore, the US, and the UK are also on a collision course with the exchange.

Early last months, Barclays customers in the UK were blocked from transferring funds to Binance after the latter faced heat from global regulators. The bank told customers they would no longer be able to send credit and debit card payments to Binance.

Meanwhile, the crypto exchange has announced plans to shut down crypto derivatives trading in Germany, Italy, and the Netherlands.

As per Cruncbase, since its inception, Binance has raised a total of US$35 million in funding over 10 rounds from investors including Vertex Ventures Southeast Asia & India.

Image Credit: Binance

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