Binance is in talks with Malaysian regulators about a potential licensed return to the country, more than five years after authorities ordered the cryptocurrency exchange to cease local operations.

The company has spent the past 10 months engaging the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) on a possible licensed business model, Bloomberg reported.

A Binance spokesperson confirmed the discussions on 31 October, saying they focused on the viability and structure of a licensed business in Malaysia.

The exchange did not disclose the type of license it is seeking. Malaysian authorities continue to block access to its website and mobile applications.

In July 2021, the SC ordered Binance to cease operating in Malaysia after finding that it had been running a digital asset exchange without authorisation.

The regulator also directed Binance to stop its media and marketing activities and restrict Malaysian investors from accessing its Telegram group.

Although the SC removed Binance from its Investor Alert List in 2024, it added the exchange back on 8 October without publicly explaining the decision.

In July, the Ministry of Finance confirmed that Binance remained unlicensed in Malaysia and that its website and app were still blocked.

The discussions come as Binance faces scrutiny following a security breach on 29 October that resulted in approximately US$6.3 billion in stolen crypto assets, making it the largest known crypto hack.

The exchange temporarily suspended withdrawals but resumed them in phases on 1 November. Binance said it had replenished approximately 95% of the affected assets and would absorb the losses.

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