Malaysian Regulator Orders Huobi to Halt its ‘Illegal’ Operations in the Country

May 24, 2023 AsiaMalaysia Blockchain Crime & Legal

Malaysian Regulator Orders Huobi to Halt its ‘Illegal’ Operations in the Country.
The Securities Commission Malaysia (SC) has reportedly accused Huobi, a Seychelles-based cryptocurrency exchange founded in China, of running a cryptocurrency exchange without the necessary authorization.

As such, the watchdog (SC) urged the company to disable its website and mobile application in the country.

Huobi On Target

As reported by The Malaysian Reserve, the SC has alleged that Huobi and its CEO – Leon Li – operated a digital asset business in the Asian country 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. It also insisted that Huobi should stop sending any advertisements (whether via e-mail or social media interaction) to Malaysian investors.

“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests,” the SC stated.

The watchdog considers Huobi’s breach a serious issue outlining that operating a DAX without securing the SC’s registration as a Recognised Market Operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007.

Subsequently, it advised local investors who have used the exchange’s services to cease trading on the platform, withdraw their assets, and close accounts.

Huobi’s Efforts in Hong Kong

Contrary to its regulatory problems in Malaysia, the entity 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.

“This is a major step for the major cryptocurrency exchange and a sign of its continued commitment to operating in a compliant and regulated manner,” he added.

Additionally, the company will launch a new venue in the special administrative region of China called Huobi Hong Kong that will be “fully compliant with local regulations and offer a range of trading pairs and services to customers.”

The authorities of Hong Kong have recently taken a pro-crypto path, positioning the region as a digital asset hub. Leading exchanges like OKX sought regulatory permits in the area, whereas local cryptocurrency firms and banks initiated a meeting to smooth their interactions.