Binance, the world’s leading cryptocurrency exchange by trading volume, returns to the Malaysian markets with a strategic stake in the country’s regulated digital asset trading platform from MX Global.
Binance and Cuscapi Berhad acquired a key stake in MX Global, one of the four recognized market operators – Digital Asset Exchange licensed by the Securities Commission (SC) in Malaysia.
Hello Malaysia. https://t.co/vsHzHlm7KI
— CZ Binance (@cz_binance) March 1, 2022
The leading cryptocurrency exchange has a significant presence in the Asian region and with its new partnership in Malaysia, the exchange aims to expand the sustainable growth of the cryptocurrency market in the Southeast Asian region. MX Global, on the other hand, aims to take advantage of the recent partnership and new capital flow to expand its market and become a leading liquidity hub in the region.
Binance’s recent string of partnerships also reflects something of a pattern, especially in regions where the exchange has struggled to independently mitigate regulatory compliance requirements. The cryptocurrency exchange restricted its services in Malaysia in July 2021 after an SC order for non-compliance with regulatory laws.
A Binance spokesperson told Cointelegraph that the recent partnership will help the exchange understand the local regulatory approach, explaining:
“This is part of Binance’s initiatives to cooperate with regulators. By working with regulated platforms, we are supporting local representatives to further expand their business while being compliant.”
in Singapore, cryptocurrency exchange withdrew its cryptocurrency license application just a week after announcing an 18% stake in the private stock exchange. The cryptocurrency exchange also gained access to the UK sterling payment network through its partnership with PaySafe, after it was banned by the country’s regulator in 2021.
The cryptocurrency exchange also undertook a similar strategy in Thailand, where the exchange had to shut down operations in July 2021, but re-entered the Thai market with its partnership with the country’s Gulf Energy Development PCL in January 2022.
In 2021, Binance faced regulatory warnings and service restrictions from more than a dozen countries. However, the exchange managed to amend its regulatory relationship in several of these nations through partnerships with third parties.
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