Cryptocurrency exchange Huobi has been ordered by the Securities Commission (SC) to cease operating in Malaysia. The regulator issued a public reprimand to Huobi CEO Leon Li. Here are the details…
Reaction from Malaysia to crypto exchange Huobi
In a press release on May 22, Malaysia SC said that Huobi is operating illegally in the country because it has not registered as a crypto-asset exchange (DAX). Authorities stated that this was a serious violation of the Capital Markets and Services Act of 2007, which requires exchanges to be licensed as a Recognized Market Operator (RMO) from Malaysia SC. For this reason, the exchange has been directed to disable its website and mobile app on various platforms such as the Apple Store, Google Play, and others. The statement also included the following statements:
Huobi Global Limited has also been directed to stop advertising, posting or sending to Malaysian investors, whether via email or social media platforms.
The financial regulator advised Malaysian-based investors to withdraw all their assets from the platform and close their accounts immediately. According to SC, continued use of the exchange could expose them to “fraud”. Therefore, local laws may not protect them. It was added that CEO Leon Li needs to make sure the directives are followed.
Li sold his majority stake
The new order comes at a time when Huobi is trying to regain its position in the market. The exchange had to close its Chinese operations in 2021. Because cryptocoin.com As we have also reported, it lost most of its market dominance to its competitors in the past years. Meanwhile, Huobi founder and CEO Leon Li sold his controlling stake in the crypto exchange to Hong Kong-based asset managers About Capital last October. Li said the deal will enable the company to accelerate its globalization plans, including business expansion initiatives. At the time, reports indicated that Li would leave the company entirely. But according to his LinkedIn account, he continues to hold the CEO position.
Investors are advised to be careful when choosing investment platforms, and always do a thorough due diligence before making any investment decision. They should also be wary of investment plans that promise extremely high returns with minimal risk. Because such promises often turn out to be fraudulent. By taking these precautions, investors can protect their investments and avoid falling victim to fraudulent schemes. The recent sanctions action against Huobi Global Limited marks SC’s effort to maintain a fair and transparent investment environment in Malaysia. Time will tell what will happen to Huobi in the coming period.