Binance buys stake in Malaysian startup to turn around regulatory deadlock

abdelaziz Fathi

Binance is acquiring a stake in MX Global Sdn Bhd, a licensed cryptocurrency platform in Malaysia, a few months after the world’s largest cryptocurrency exchange left the country over its regulatory licence limbo.

Binance CEO Changpeng Zhao

In a statement, Binance said it has made an undisclosed equity investment in MX Global to help it build brand awareness, hire more talents, and introduce new products within Malaysia’s regulatory framework. Part of the deal, digital business solutions provider Cuscapi Bhd Cuscapi has subscribed for redeemable convertible preference shares (RCPS) issued by MX Global.

While Binance did not disclose the amount of its equity investment into MX Global, Cuscapi revealed in a bourse filing that it has invested more than $2.1 million.

The acquisition could help with Binance’s regulatory hurdles, as MX Global was recently granted the status of a recognised market operator-digital asset exchange (RMO-DAX). Back in July 2021, the startup obtained full approval from the Securities Commission Malaysia (SC).

Changpeng Zhao (CZ), Founder and CEO of Binance, said, “We see 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.”

Malaysia slaps CZ with regulatory order

CEO of MX Global, Dato’ Fadzli Shah added: “MX Global aspires to be the preferred liquidity platform for digital asset or cryptocurrency investors and token issuers locally and internationally. The cooperation of Binance will not only support us in achieving this goal but should also 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.”

Binance had been slapped last year with an enforcement action by Malaysia’s Securities Commission Malaysia (SC) and was ordered to stop operating in the country. The watchdog also noted that Binance’s P2P platform allows users to buy cryptocurrencies using Malaysian ringgit though it lacks the license to operate a fiat-to-crypto gateway.

The legal notice specifically named Binance’s brands registered in the Cayman Islands, Lithuania, the UK, and Singapore. The exchange CEO Zhao Changpeng (CZ) was also mentioned by name to ensure that the SC’s directives are carried out.

Anyone who engages in regulated activities without a valid license or registration from the SC is committing an offence under the Capital Markets and Services Act 2007. If convicted, they may be punished with imprisonment of up to ten years and fined.

 

Read this next

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

<