The Securities Commission Malaysia (SC) has accused Huobi, the cryptocurrency exchange, of operating without authorization. As a result, the watchdog has called on Huobi to shut down its website and mobile application in the country. According to The Malaysian Reserve, the SC has accused Huobi and its CEO, Leon Li, of conducting digital asset business in the country without following the proper regulations. The watch dog has ordered the firm to halt its domestic operations, including its website and mobile application on several platforms such as Apple Store and Google Play. The regulator has also required that all Huobi’s e-mail or social media interactions to Malaysian investors come to an end. The SC’s decision came after concerns about the platform’s compliance with local regulatory policies and protecting investors’ interests. The watchdog considers Huobi’s breach a serious issue arguing 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. The SC has advised local investors to withdraw their assets from the platform and close accounts.
Amid the aforementioned regulatory issues in Malaysia, Huobi has already debuted its intentions to strengthen its presence in other parts of Asia. Justin Sun, Tron’s founder as well as a member of Huobi’s Global Advisory Board, announced that it had applied for a trading license with Hong Kong’s watchdogs earlier this year. “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 said. Additionally, the company intends to launch a new venue in Hong Kong called Huobi Hong Kong that will comply with local regulations while offering a wide range of trading pairs and services to customers.
Hong Kong’s authorities have recently assumed a pro-crypto stance, making the region a digital asset hub. Leading exchanges like OKX have sought regulatory permits in the area, whereas local cryptocurrency firms and banks have also been willing to organize meetings to improve their interaction initiatives.