M’sian crypto exchange raises US$1.6mil, with a lead investor being SC-banned Binance

Malaysian-founded cryptocurrency exchange, MX Global Sdn Bhd (MX Global) has reportedly raised US$1.6 million in funding, according to VentureCap Insights data.

MX Global is one of the four recognised market operator-digital asset exchanges (RMO-DAX) in Malaysia, after obtaining full approval from the Securities Commission Malaysia (SC) in July 2021.

It is a liquidity platform for cryptocurrency investors and token issuers, allowing users to trade in Bitcoin and Ethereum.

The round was led by global crypto exchange, Binance, and Hachiman Technology, with the latter reportedly being MX Global’s parent company.

Previous MX Global acquisition reports

The Edge previously reported in March that Binance had invested an undisclosed amount in MX Global, with digital business solutions provider Cuscapi Bhd also participating.

It said the capital injections would allow MX Global to build brand awareness, hire more high-quality talent and develop new features within Malaysia’s regulatory framework.

This unknown capital injection sum comes after Binance reported that it was on the threshold of acquiring a minority stake in MX Global, pending the SC’s approval. At the time, the move was already approved by the Companies Commission of Malaysia (CCM).

Binance and its rocky relationship with regulators

In June, Binance CEO Changpeng Zhao revealed that Binance will work with Malaysian cryptocurrency exchanges to expand its services in the country.

This came after a cease and desist order issued by Malaysia’s SC against Binance and Zhao in July 2021, as the company was operating without a licence.

Binance underwent a regulatory crackdown by the SC, and was ordered to cease its operations immediately while its website and app were banned locally. 

However, many Malaysian crypto investors and traders continued to access its website using a VPN.

Binance isn’t only facing trouble with regulators in Malaysia, though. 

In Singapore, Binance Asia Services withdrew its application to the Monetary Authority of Singapore in December 2021 to operate a licenced crypto exchange. 

Instead, Binance announced that it was acquiring an 18% stake in Hg Exchange, a regulated private securities exchange in Singapore.

In 2020, Binance made news in Indonesia by acquiring crypto exchange Tokocrypto, the first exchange regulated by the country’s Commodity Futures Trading Regulatory Agency.

It can be said that Binance’s acquisition exercise in SEA exchanges is a way for the world’s largest crypto exchange platform to work around strict local regulations and become the main player in crypto investments and trading. 

Featured Image Credit: Dato’ Fadzli Shah