Malaysia’s Securities Commission (SC) has taken action against Huobi Global and its CEO, Leon Li, for violating the Capital Markets and Services Act. The SC has publicly disapproved of the company and its CEO for their non-compliance with regulations. In response, the regulator ordered the company to disable its website and mobile applications immediately. The SC has also instructed the company to cease all trading activities and ensure that it does not circulate, publish or send advertisements to Malaysian investors. The regulator has urged investors to withdraw their funds and close their Huobi-associated accounts. This move is based on the SC’s commitment to ensuring the safety and protection of investors.
Huobi Global has been under scrutiny by the Malaysian securities regulator since August 2022. The Securities Commission Malaysia (SCM) raised concerns about the exchange’s operations within the country. SCM has placed emphasis on the importance of adhering to local regulatory requirements, and its focus remains on prioritizing the best interests of investors and safeguarding their interests.
Only four companies are officially registered as recognized cryptocurrency exchange operators in Malaysia. These include Luno Malaysia, MX Global, Sinegy, and Tokenize Technology. Binance faced a similar predicament to Huobi in the middle of 2021 when it was directed to halt operations in the region due to a lack of regulatory approval. However, Binance managed to establish a presence in the Malaysian market in 2022 by acquiring a stake in the regulated trading platform MX Global.
In response to recent reports, a Huobi Global spokesperson clarified that the situation outlined pertains to the previous Huobi entity and former shareholders. This is not associated with the current Huobi platform, which adheres to strict regulatory compliance globally.
The regulatory authorities responsible for overseeing these matters have placed significant emphasis on adhering to local regulatory requirements. The Huobi Global case demonstrates the regulatory authorities prioritizing the best interests of investors and safeguarding their interests.
(Source: Tech in Asia, TradingView.com)