Binance makes Malaysia comeback with MX Global's equity investment

Cryptocurrency exchange, Binance is making a comeback in Malaysia with an equity investment with MX Global, a Kuala Lumpur-based fintech company. According to MX Global, the new capital injections will allow the company to build brand awareness, hire more high-quality talent and develop new features within Malaysia's regulatory framework. 

Aside from its equity investment, Binance aims to support sustainable growth in the cryptocurrency market in Southeast Asia by working with regional and local partners to drive further collaborations. A+M has reached out to Binance for additional information regarding its partnership strategy. 

According to Binance's founder and CEO, Chanpeng Zhao, Malaysia is a potential market due to its "respected and innovative crypto and blockchain community". Zhao added that by partnering with MX Global, Binance 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. 

Meanwhile, MX Global's CEO, Fadzli Shah said the company is aspiring to be the preferred liquidity platform for digital asset or cryptocurrency investors and token issuers locally and internationally. Now with Binance's cooperation, not only will it help the company achieve its goal, but also provide a capital-efficient opportunity for MX Global to align and compete with other global players in the industry, explained Fadzli. "We will continue building a safe, easy and real digital asset ecosystem for our customers," he added. 

MX Global is one of the four Recognized Market Operator-Digital Asset Exchange (RMO-DAX) that has been granted full approval by the Securities Commission Malaysia (SC) in July 2021. Founded in 2018, MX Global has a mission to create a highly-accessible and secure cryptocurrency trading platform that allows merchants, consumers, and traders to transact cryptocurrencies, said its LinkedIn. 

Binance exited Malaysia last year. Last July, the Securities Commission cracked down on Binance for illegally operating a digital asset exchange. According to The Star, the SC also urged Malaysian investors to “stop dealing and investing” with Binance, adding that those with accounts should “immediately cease trading” through Binance’s platforms. Users were also previously strongly urged to “withdraw all their investments immediately”. A month later, Binance had its product offerings restricted in Malaysia and had to cease products and offerings including P2P merchant applications. It also asked users to remove related trade ads by 13 August. 

Similarly in Singapore, its local arm Binance Asia Services ceased operations in the market on 13 February. This came after it withdrew its application last December for a licence by the Monetary Authority of Singapore to provide cryptocurrency services in Singapore. Financial regulators in Hong Kong and Japan also warned consumers about Binance, stating that it was not registered to conduct business within the country. The company's unit in the UK was also banned last June from carrying out regulated business in the country. 

Amidst this hullabaloo in the media, Binance invested US$200 million in business magazine Forbes last month in an attempt to go public in New York through a US$630 million tie-up with Magnum Opus Acquisition, a special purpose company. The transaction is expected to close this quarter, with Binance's chief communications officer, Patrick Hillmann, and head of Binance Labs, Bill Chin, joining as named directors on the Forbes board.

Photo courtesy: 123RF 

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