Huobi ceases operations in Malaysia, all you need to know
The Securities Commission Malaysia has urged Malaysian investors of Huobi to withdraw their funds and crypto assets from the crypto exchange and shut down their accounts.
- Malaysia’s top securities regulator has ordered Huobi Global to cease all operations.
- Huobi was allegedly illegally operating a digital asset exchange in the country.
Huobi Global is facing enforcement action by Malaysia’s top securities regulator. In a public reprimand issued earlier today, the Securities Commission Malaysia ordered the crypto exchange, linked to Tron [TRX] founder Justin Sun, to cease all operations in the country. The regulator has accused Huobi of operating a digital asset exchange without registration.
Malaysian Citizens Warned Against Using Huobi Global
As per a press release put out by the Securities Commission Malaysia, Huobi Global has been accused of illegally operating a digital asset exchange in the country. The securities regulator has ordered the crypto exchange to cease all operations in Malaysia. This included deactivating its website and mobile application on platforms such as Apple Store, Google Play and any others.
The securities regulator’s enforcement action also named Huobi’s CEO, Leon Li. Li’s job will be to ensure that the firm carries out the directives issued for his company.
The Securities Commission Malaysia also ordered Huobi to cease circulating, publishing or sending any advertisements, whether in email or on social media platforms, to Malaysian investors. Moreover, Malaysian traders should immediately stop trading on Huobi’s trading platform, withdraw all their funds, and close their accounts.
The country’s investors should only engage with recognized market operators (RMO). The regulator, to that end, stated:
“Registered RMOs have undergone strict regulatory scrutiny and are required to adhere to strict guidelines so that investors are protected under Malaysia’s securities laws.”
Concerns regarding Huobi’s business activities in Malaysia emerged in August last year after the Securities Commission, Malaysia added the crypto exchange to its Investor Alert List. The move was in the interest of consumer protection given that Huobi violated Section 7 (1) of the Capital Markets and Services Act 2007. For the uninitiated, the firm was operating in the country without registering as a recognized market operator.
