The largest of the world’s cryptocurrency exchanges and related products, Binance continues to come under pressure from regulators. Now, the case of Malaysia generates a new episode in which the authorities of that nation order the platform to stop its activities. At the same time, he was ordered to stop all related publicity in the country.
In a statement, the Securities Commission of that Asian nation, demanded that the exchange’s access to Telegram groups “must be restricted.” The latter, in the case of Malaysian citizens. With this, a chapter that began with the recent warning of the authorities against the platform seems to close. It joins a series of pressures around the world against this firm dedicated to the trade of digital currencies.
The main axis of pressure against Binance focuses on the fact that the exchange platform offers trading operations of different products without a license. In this regard, the firm’s executives, led by its CEO Changpeng Zhao, reiterate their desire to catch up with the authorities. However, this does not seem to make a dent in the increasing pressure they are receiving from different regulators on all continents.
What steps is Binance taking to escape regulatory pressure?
Recently, the aforementioned CEO of the crypto exchange firm offered a press conference to the media. In it, he expressed that Binance has every willingness to cooperate and intends to adapt to the demands of the pressure. To do this, they will become an institutional company, regularized by the national authorities of the countries where it operates.
Earlier, in a public letter, CZ addressed regulators in all countries with similar conciliatory terms. Still, the pressure does not seem to diminish against the largest of the world’s exchanges. According to proponents of cryptocurrencies, this is a coordinated attack to diminish the importance of Bitcoin and other currencies.
In other words, the determination of the authorities to press without looking at conciliation would be a sign of fear. Authorities suspect that cryptocurrencies could give citizens the power to develop their finances without relying on the state and centralized banking. In that sense, attacking Binance could be translated as an attack on one of the pillars of the global cryptocurrency trade.
Meanwhile, authorities say these are steps to “protect” people from unregulated high-risk investments. Be that as it may, the clear fact is that Binance is facing unprecedented pressure and is taking calculated steps to try to cool things down.
Some actions taken in Europe
As for the Malaysian authorities, they were clear in the aforementioned publication. “The SC today announced enforcement actions against Binance for illegally operating a digital asset exchange platform.” Regarding Europe, the platform took another series of measures to calm some of the regulators who have been pressing in recent days.
In this way, the firm announced the liquidation of options in some European countries such as Germany, the Netherlands and Italy. Thus, investors from those nations will not have the possibility of opening futures and derivatives operations on the platform.
In the short statement, the company assures that the measure takes effect immediately. Likewise, it notifies that users in those countries have a period of 90 days to close their operations in those options.
Binance and regulators have a long way to go, and in the meantime, pressure seems to be the norm from the latter. Other important exchanges they are quick to take action before the authorities notice them.