The world’s largest cryptocurrency exchange Binance is withdrawing part of its services to users in South Korea and Malaysia. The announcement was made by the platform from its website. In addition, they affirm that they are willing to comply with all requests from regulatory entities to create a climate of understanding.
As far as South Korea is concerned, the platform proceeded to eliminate trading with the local currency Won (KRW). In that sense, it suppressed the options of the P2P trade, the payment options and the trading that involves that currency. It also ordered the end of support for its Korean-language website. The services eliminated in that nation took effect immediately after the announcement.
For its part, in Malaysia, the platform did the same with the currency of that country, the Ringgit (MYR). It should be remembered that the financial regulator of that country ordered Binance on July 30 to close all its operations. To do this, it offered a period of 14 days for them to comply with the order.
Why is Binance withdrawing services from those countries?
The fact that Binance withdraws part or all of the services of those two nations should be interpreted as something beyond its control. In this sense, it is obvious that it was precisely the regulatory entities of the aforementioned nations, who initiated the pressures against the exchange.
For example, Malaysia, as noted above, gave the digital currency exchange firm an ultimatum to withdraw from the country. South Korea, for its part, also made tough decisions. In both cases, it can be said that the exchange he was expelled for sponsoring the trading of assets illegally, according to the aforementioned authorities.
These are not the only countries where Binance was practically expelled. The most recent were China, a country where a law is in force that prohibits the trade of cryptocurrencies. Consequently, Beijing a few weeks ago placed Binance on the blacklist of platforms that, under no circumstances, can operate within its legislation.
More recently, on August 9, the exchange did the same in Hong Kong, a province under the jurisdiction of the People’s Republic of China. In this way, Binance withdraws from several countries, leaving its services out of reach of its inhabitants. This pushes the firm for the purchase and sale of digital currencies to lose a large number of users.
The pressure that the platform has received for months is one of the strongest in the world of digital currencies. A large number of countries carried out what appears to be a synchronized attack against the company led by Changpeng Zhao.
These countries include the United Kingdom, Italy, the United States, Lithuania, Germany, Malaysia and South Korea, among others. In most of these nations, the accusations against the firm are mainly based on the fact that they operate with assets without the necessary licenses.
For its part, the board of the exchange company, highlighted on various occasions its willingness to institutionalize itself. However, the bridges they try to build are ignored by regulators. These are difficult days for this platform that does not stop reaping successes in attracting new users that enter the crypto market.
It should be noted that Binance continues to show goodwill gestures to calm regulators. Therefore, it decided to eliminate share tokens, leverage greater than 20x in futures trading operations and others that reduce the risk of losses for users. Like the peace offers in the previous paragraph, the latter also fall on deaf ears.
Create a sustainable ecosystem for Blockchain
As the days go by, the Binance platform withdraws more and more services to users from different countries. This is clearly a policy not to upset the regulatory authorities. Despite this, the directive of the exchange ensures that it is a “proactive strategy to protect users.”
Regarding the latter, in their post dedicated to the withdrawal of exchange options with the Korean currency, they reiterated that position. «Our goal is to create a sustainable ecosystem around Blockchain technology and digital assets», They say.
In parallel, they affirm that they welcome developers in the regulatory framework. «As they present opportunities for market players to have greater collaboration with regulators».
The attacks on Binance seem not to end anytime soon. For some analysts, the stocks are a kind of “lynching.” With this, the regulators would aim to chastise other players in the crypto market to comply with their designs.