Binance cryptocurrency exchange is returning to Malaysian markets with a strategic investment in MX Global, the country’s regulated digital asset trading platform. The exchange hopes to boost the crypto market’s long-term growth in Southeast Asia.
MX Global, one of the four Recognized Market Operators – Digital Asset Exchange licensed by the Securities Commission (SC) in Malaysia, was bought by Binance and Cuscapi Berhad.
What the collaboration aims to bring
The major crypto exchange has a strong presence in Asia, and with its new cooperation in Malaysia, the exchange hopes to boost the crypto market’s long-term growth in Southeast Asia.
MX Global, on the other hand, hopes to expand its market and become a prominent liquidity hub in the region by leveraging recent partnerships and fresh capital flows.
Binance’s recent spate of collaborations follows a pattern, particularly in regions where the exchange has struggled to meet regulatory compliance standards on its own.
After a court decision in July 2021 for non-compliance with regulatory rules, the crypto exchange had its services limited in Malaysia.
Binance’s representative said that the recent partnership will help the crypto exchange better grasp the regulatory environment in the country, 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 businesses while they stay compliant.”
How Binance has dealt with some regulatory Issues
Only a week after disclosing an 18 percent ownership in the private stock market in Singapore, the crypto exchange withdrew its crypto licensing application.
After being blacklisted by the country’s authorities in 2021, the crypto exchange was able to re-enter the pound payment network through a deal with PaySafe.
The crypto exchange followed a similar tactic in Thailand, where it had to close its doors in July 2021 but re-entered the market in January 2022 through a collaboration with the country’s Gulf Energy Development PCL.
Over a dozen nations issued regulatory warnings and service limits against Binance in 2021. However, through third-party collaborations, the exchange was able to repair its regulatory connection in numerous of these countries.
