Malaysian Regulator Takes Action Against Huobi's 'Illegal' Operations
The Securities Commission Malaysia (SC) has ordered Huobi to cease all activities in Malaysia and requested local investors to withdraw assets and close accounts. The SC has reportedly accused Huobi of running a cryptocurrency exchange without the necessary authorization, and as such, the watchdog urged the company to disable its website and mobile application in the country.
Although the SC did not provide any details about the specific activities that led to their decision, the regulator has alleged that Huobi and its CEO, Leon Li, operated a digital asset business in Malaysia illegally. The regulator ordered the firm to cease its domestic operations, including its website and mobile application on several platforms such as Apple Store and Google Play.
The watchdog considers Huobi's breach a serious issue outlining that operating a DAX without securing the SC's registration as a Recognized Market Operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007.
This decision comes after concerns about the platform's compliance with local regulatory requirements and protecting investors' interests. The regulator advised local investors who have used the exchange's services to cease trading on the platform, withdraw their assets, and close accounts.
While Huobi faces regulatory problems in Malaysia, it has already displayed intentions to strengthen its presence in other parts of Asia. Justin Sun, Tron's Founder and a member of Huobi's Global Advisory Board, said earlier this year that the exchange has applied for a trading license with Hong Kong’s watchdogs.