Binance, the world’s biggest cryptocurrency exchange by trading volume, is returning to Malaysia with a strategic investment in the country’s regulated digital asset trading platform MX Global.
MX Global, one of the four Recognized Market Operators – Digital Asset Exchange licensed by the Securities Commission (SC) in Malaysia, was acquired by exchange giant Binance and Management services company Cuscapi Berhad.
Hello Malaysia. 🇲🇾https://t.co/vsHzHlm7KI
— CZ 🔶 Binance (@cz_binance) March 1, 2022
Binance 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. On the other hand, MX Global hopes to expand its market and become a prominent liquidity hub in the region by leveraging recent collaborations and fresh capital flows.
Exchange’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 order in July 2021 for non-compliance with regulatory rules, the cryptocurrency exchange had its operations restricted in Malaysia.
A spokesperson from Binance said that the current agreement would help the crypto exchange grasp the local regulatory approach.
Strategic actions by Binance
Only a week after disclosing an 18% ownership in the private stock market in Singapore, the crypto exchange withdrew its crypto licensing application. After being barred by the country’s authorities in 2021, Binance re-entered the sterling payment network through a deal with PaySafe.
The crypto exchange that has seen regulatory pressure followed a similar strategy in Thailand, where it had to close its doors in July 2021 but re-entered the market in January 2022 through a partnership with the nation’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 relationship in most of these countries.