Cloud Division

Binance Terminates Malaysia and South Korea Operations

Binance, the world’s largest crypto exchange by reported turnover, said on Friday it would no longer offers trading pairs, P2P merchant applications and payment options in both South Korea and Malaysia.

Binance added in a blog post that as it constantly evaluates its product and service offerings to “remain compliant with local regulations,” it will cease the following products and offerings in Malaysia effective next Monday:

  • MYR trading pairs
  • MYR payment options
  • P2P merchant applications

This move comes shortly after Malaysia’s regulator reprimanded the exchange and its chief executive for operating illegally in the country, despite a previous warning. The exchange CEO Zhao Changpeng (CZ) was also mentioned by name to ensure that the SC’s directives are carried out.

Separately, Binance said it will discontinue the following offerings in Korea, effective immediately.

  • KRW trading pairs
  • KRW payment options
  • P2P merchant applications
  • Korean language website support

Back in December 2020, Binance announced the closure of its South Korea operations after eight months, citing tight liquidity and low transaction volumes. Binance Korea was leveraging the parent exchange’s functionalities, such as liquidity and order matching engine. But according to new rules in South Korea, which went into effect in January, local crypto platforms can no longer share their order books with other exchanges.

Earlier this week, Binance said it was the first major digital assets exchange to “proactively” restrict access to futures and derivatives product offerings in Hong Kong.

The announcement comes barely a week after Binance decided to shut down its futures and derivatives business across Europe, starting in the Netherlands, Germany, and Italy. The influential exchange has come under increasing regulatory scrutiny in Europe amid concerns about compliance and protection for investors

Binance marked its fourth anniversary in July amid a slew of regulatory actions. Authorities in in Hong Kong as well as in Britain, Germany, Japan and Italy issued warnings over its cryptocurrency trading and derivatives activities. Regulators worried about consumer protection and AML checks, triggering the flight of some payment partners and institutional investors.

Despite this, CEO Changpeng Zhao said he is not worried about rival exchanges capitalizing on recent regulatory woes.  He described Binance’s ecosystem – which includes futures trading, wallets and payments service, OTC trading, and a Visa-backed credit card – as very hard to “replicate in one go.”