Binance reaffirms commitment to Malaysia return, absorbs US$6.3bil impact

KUALA LUMPUR: Binance has reiterated its commitment to engaging with Malaysian regulators over a potential licensed return to the country and absorbing the financial impact of a recent US$6.3 billion (RM25.6 billion) security breach.

The response comes after the world's largest cryptocurrency exchange confirmed it had been in discussions with the Securities Commission (SC) and Bank Negara Malaysia over the past 10 months on a licensed pathway back into the local market.

This comes more than five years after the SC ordered Binance to cease operations in Malaysia in 2021.

Responding to Business Times' queries, a Binance spokesperson said the company remained committed to working constructively with both regulators.

"We remain committed to engaging constructively with the Securities Commission Malaysia and Bank Negara Malaysia as we work towards bringing long-term value to Malaysians in a fully compliant manner.

"We are not able to disclose further details on our discussions at this stage," they added.

On the recent security incident, Binance said it had covered 95 per cent of the affected assets and would bear the full financial impact of the stolen funds, rather than passing the losses on to users.

The company said it was in the process of purchasing the remaining five per cent, which comprised less-liquid assets, and would provide further updates as the process was finalised.

It added that precautionary measures had been implemented to safeguard the platform, alongside security assessments and service readiness checks following the breach.

Binance said withdrawals were being restored progressively as those checks were completed, while deposit services had remained open throughout.

"User funds remain safe. Binance will absorb the financial impact of the stolen funds, not our users," the spokesperson said.