Binance, the largest crypto exchange in terms of trading volume worldwide, is returning to Malaysian markets with a strategic stake at the country’s digital asset trading platform MX Global.
Binance and Cuscapi Berhad bought a significant stake in MX Global. MX Global is one of four Recognized market Operators – Digital Asset Exchange licensees by the Securities Commission (SC).
Hello Malaysia. https://t.co/vsHzHlm7KI
— CZ Binance (@cz_binance) March 1, 2022
The world’s largest crypto exchange is well-known in Asia and has recently formed a partnership with Malaysia to increase the sustainability of the Southeast Asian crypto market. MX Global on the other hand plans to capitalize on the new partnership and capital flow to grow its market and be a major liquidity hub in the region.
Binance’s recent series of partnerships reflects a pattern, particularly in areas where it has had difficulty complying with regulatory compliance requirements. After a SC order in July 2021, the crypto exchange had stopped offering services to Malaysia.
Binance spokeswoman said that the new partnership will allow the crypto exchange to understand local regulations and provided further details:
“This is Binance’s initiative to cooperate with regulators. We are helping local representatives expand their businesses by working with regulated platforms while ensuring they remain compliant.
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The crypto exchange in Singapore withdrew its application for a crypto license just one week after it announced an 18% stake on the private stock exchange. After being barred by the regulator of the country in 2021, the crypto exchange was able to access the United Kingdom’s sterling payment network via its partnership with PaySafe.
The exchange also tried a similar strategy in Thailand, where it had to close its operations in July 2021. However, the exchange made a reentry into the Thai market in January 2022 through its partnership with the Gulf Energy Development PCL.
Binance was subject to service restrictions and regulatory warnings from more than a dozen countries in 2021. Through third-party partnerships, Binance was able to repair its relationship with several countries.