Is this big move by Binance in Malaysia worth the risks?

Is this big move by Binance in Malaysia worth the risks?

Binance, which is facing crackdown and regulatory hurdles across a wide spectrum of jurisdiction, is betting a lot on Malaysia. It has entered into a deal with local fintech company MX Global Sdn Bhd yesterday.

The equity investment into the company from Binance, the world’s largest cryptocurrency and blockchain ecosystem, will allow MX Global to build brand awareness.

It will also allow MX Global to hire more high-quality talent and develop new features within Malaysia’s regulatory framework.

MX Global also landed another investment for Redeemable Convertible Preference Shares into the company by Cuscapi Berhad, a pioneer digital business solutions provider in Malaysia.

MX Global is one of the four Recognized Market Operator-Digital Asset Exchange that has been granted full approval by the Securities Commission Malaysia in July 2021 and complies with the standards and practices to uphold investor protection in conducting safe and secure trading of cryptocurrencies in the country.

MX Global offers solutions for users to store and trade cryptocurrencies under compliant and safe cyber-security environments including a regulated local cryptocurrency exchange at

SC’s wrath against Binance

The SC declared in July of last year that it will take enforcement proceedings against Binance for illegally operating a Digital Asset Exchange in Malaysia.

Sections 7(1) and 34(1) of the Capital Markets and Services Act 2007 require all DAX operators to be registered with the SC as a Recognised Market Operator.

Violators may face a fine of up to RM10 million or imprisonment for up to ten years, or both. This is hardly surprising given that Binance has been on the SC’s Investor Alert List since July 2020.

Meanwhile, users in Malaysia were not barred from investing in ‘betting’ platforms where millions are spent.

Nevertheles, the CEO of MX Global, Dato Fadzli Shah says, “The cooperation of Binance should 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.”

One can only question how much safer consumers’ money will be now that it was not when they used Binance for bitcoin investing?

Binance hopes to work with regional and local partners to drive further collaborations. Indeed, this is a win for Binance as it will allow a pathway for users to grab more opportunities to keep their cash on the platform via MX Global, if necessary.

Changpeng Zhao (CZ), Founder and CEO of Binance, saw a potential in Malaysia given, “its respected and innovative crypto and blockchain community!”

“We believe that partnering with MX Global will be a springboard to new opportunities, both in Malaysia and the region as a whole as well as across the entire crypto and blockchain ecosystem.”

Photo: Fintech News Malaysia