By Tom Blitzer
Key Insights:
- Huobi Global faces enforcement action in Malaysia for unauthorized digital asset exchange operations, prompting caution for investors to withdraw funds.
- Huobi received a public reprimand and must deactivate Malaysia’s website and mobile app for an unregistered digital asset exchange operation.
- Securities Commission Malaysia urges investors to engage only with registered market operators to ensure secure investments and compliance with regulatory guidelines.
The Securities Commission Malaysia (SC) has taken decisive measures against the activities of Huobi Global, led by Justin Sun, due to their unauthorized operation of a digital asset exchange within the nation’s borders. In response to this violation, the securities regulatory body has issued a specific cautionary notice to all Malaysian investors, urging them to promptly halt any trading activities on Huobi and swiftly withdraw their funds from the platform.
Regulatory Hammer Falls on Huobi Exchange
A recent announcement by the Securities Commission Malaysia revealed that Huobi and its CEO, Leon Li, have received a public reprimand due to their unregistered operation of a digital asset exchange within Malaysia. The regulatory body has also mandated the exchange to deactivate its website and mobile application from popular platforms such as Apple Store and Google Play.
The directive from the securities regulator mandates Huobi Global to cease the dissemination of advertisements via email or social media platforms to Malaysian investors. CEO Leon Li has received explicit instructions to execute the orders the Securities Commission set forth diligently.
Secure Investments: Stick with Registered Market Operators
The Securities Commission Malaysia issued a firm recommendation to investors, urging them to interact exclusively with acknowledged market operators that have obtained registration from the Commission. The regulator emphasized that registered RMOs have undergone rigorous regulatory examinations and must comply with stringent guidelines to safeguard investors under Malaysia’s securities laws.
Huobi Global’s recent enforcement action follows nine months since the Malaysian securities regulator raised concerns about the crypto exchange operating without proper registration in the country. Last year, the regulator took action by including Huobi on its Investor Alert List and advising Malaysian investors against using the platform until it obtained approval from the SC. Huobi acknowledged the situation and mentioned ongoing discussions with the country’s regulators regarding its operations in the local market.