Binance Seeks Malaysian Licence in Talks with Regulators

Cryptocurrency exchange Binance is in active discussions with the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) to obtain a local operating licence, more than five years after being ordered to halt domestic operations. The company confirmed on 1 November 2026 that it has conducted joint regulatory talks over the past 10 months to establish a compliant business model for Malaysian investors. The move follows heightened scrutiny over peer-to-peer ringgit trading and a major security incident involving approximately US$6.3 billion (~RM25.6 billion) in digital assets, presenting Malaysian cryptocurrency traders with potential regulated access alongside lingering compliance hurdles.

Key Facts

Binance is actively pursuing regulatory clearance to re-enter Malaysia's digital asset market after its 2021 cessation order. Discussions with domestic financial regulators address business model viability, previous enforcement penalties, peer-to-peer ringgit trading oversight, and security containment measures following a major global asset breach affecting billions in digital tokens.

Binance has conducted 10 months of joint regulatory talks with the Securities Commission Malaysia and Bank Negara Malaysia to establish a licensed business.

Why Is Binance Seeking a Malaysian Licence Now?

Binance is seeking a Malaysian operating licence to re-establish legitimate commercial access to domestic cryptocurrency investors after five years of regulatory exclusion. The platform has spent ten months negotiating business model viability with domestic financial authorities, attempting to transition from an unlicensed entity on enforcement watchlists into a compliant digital asset operator.

In July 2021, the Securities Commission Malaysia ordered Binance to cease operations after determining it was illegally running a digital asset exchange. The regulator mandated a complete halt to media campaigns and blocked Malaysian users from its official Telegram group. Although the Securities Commission removed Binance from its Investor Alert List in 2024, the regulator reinstated the exchange to the alert list in October 2026 without an accompanying explanation.

"discussions are still centred around the viability and structure of a licensed business model."Binance spokesperson to Bloomberg

The Securities Commission Malaysia re-added Binance to its Investor Alert List in October 2026 despite ongoing discussions between the exchange and regulators.

What Scrutiny Does Binance Face Over P2P Trading and Security?

Binance faces heightened scrutiny from Malaysian lawmakers over peer-to-peer ringgit trading circumvention alongside questions surrounding a US$6.3 billion security breach. Former finance minister Lim Guan Eng prompted regulatory inquiries into parallel currency listings, while the platform maintains that user funds remain protected through reserve capital and asset-freezing partnerships.

In September 2026, Lim Guan Eng petitioned the Securities Commission to examine whether Binance's peer-to-peer desk enabled ringgit settlements through alternative foreign currency listings, distributing the letter publicly on 31 October 2026. Binance confirmed it voluntarily disabled a Papua New Guinea kina marketplace unofficially pegged to the ringgit and clarified that a Romanian leu listing was an isolated user action. The exchange also stated that private keys remained secure during its US$6.3 billion (~RM25.6 billion) incident, with US$3 billion (~RM12.2 billion) frozen by industry partners and remaining losses backed by its SAFU reserve.

Binance voluntarily terminated a Papua New Guinea kina marketplace that operated as an unofficial substitute for ringgit transactions on its peer-to-peer platform.

What It Means for Malaysian Buyers

Malaysian cryptocurrency investors cannot currently trade on Binance under a regulated domestic framework, as no licence has been approved by the Securities Commission. While Binance is pursuing official channels, local users face ongoing regulatory warnings, and individuals seeking legal protection should remain cautious until formal registration status is granted.

Because Binance has not secured an official licence from the Securities Commission Malaysia, Malaysian traders operate without statutory protections, local ombudsman recourse, or domestic deposit guarantees. Domestic investors seeking regulatory compliance must continue using local registered market operators licensed by the Securities Commission. Those waiting for Binance's legal re-entry must monitor official announcements from the Securities Commission rather than relying on unapproved workarounds.

Malaysian crypto traders lack statutory consumer protection on Binance until the Securities Commission Malaysia officially approves its operating licence.

Common Questions

Is Binance currently legal to use in Malaysia?

Binance does not hold an operating licence from the Securities Commission Malaysia and remains listed on the Investor Alert List. While the platform is in discussions with domestic regulators, it is not authorised to operate a digital asset exchange in Malaysia.

What happened to Binance's P2P ringgit trading?

Binance disabled a Papua New Guinea kina marketplace on its peer-to-peer platform that had functioned as an unofficial peg for the Malaysian ringgit. The action followed scrutiny by former finance minister Lim Guan Eng regarding potential circumvention of Malaysian financial restrictions on unapproved currency trading.

Were user funds lost during Binance's recent security breach?

Binance stated that no private keys were leaked and customer deposits remained secure following an incident affecting US$6.3 billion (~RM25.6 billion). The company pledged full reimbursement via its SAFU reserve fund, while blockchain partners froze approximately US$3 billion (~RM12.2 billion) in compromised digital assets.

Sources and Methodology

This news dispatch synthesises corporate statements and regulatory records reported by Lowyat.NET and Bloomberg regarding Binance's licensing discussions in Malaysia. Financial data includes reported security incident valuations converted from US dollars to Malaysian ringgit at approximately 4.06 ringgit per US dollar, as documented in the primary coverage on 1 November 2026.

All details in this dispatch were verified against reporting published by Lowyat.NET and Bloomberg on 1 November 2026.