Malaysia Orders Huobi Global to Cease Activities – Registration Violation Prompted
• The Securities Commission Malaysia (SC) has issued a reprimand to Huobi Global Limited and its CEO, Leon Li for operating a digital asset exchange (DAX) without proper registration.
• SC instructed Huobi Global Limited to immediately halt its operations within the country, including disabling its website and mobile applications.
• SC advises Malaysian investors who have been using Huobi Global’s services to withdraw their investments and close their accounts.
Security Commission of Malaysia issues reprimand to Huobi Global
The Securities Commission Malaysia (SC) has recently made a move against Huobi Global Limited and its Chief Executive Officer, Leon Li, for operating a digital asset exchange (DAX) within Malaysia without proper registration. Consequently, the SC has publicly reprimanded Huobi Global Limited and Leon Li for their unauthorized operations within Malaysia, citing their violation of registration requirements.
Huobi Global asked to cease all activities in the country
As part of the regulatory action, the SC has instructed Huobi Global Limited to immediately halt its operations within the country. This includes disabling its website and mobile applications across various platforms, such as the Apple Store, Google Play, and other digital application platforms. Furthermore, Huobi Global Limited is mandated to discontinue the circulation or dissemination of any advertisements targeting Malaysian investors. In addition, Leon Li has received specific instructions from SC to ensure compliance with these directives.
Breach is considered serious by Security Commission
This action was taken due to concerns regarding non-compliance of platform with local regulatory requirements and protection of investors’ interests. The Securities Commission Malaysia considers this breach as serious offense under Section 7(1) of Capital Markets and Services Act 2007; which states that operating a DAX without obtaining SC’s registration as recognized market operator (RMO) is an offense punishable by law in Malaysia.
Malaysian Investors urged by Security Commission to end trading through Huobi
The Securities Commission Malaysia strongly advises Malaysian investors who have been using services provided by Huobi Global Limited to cease trading through their platform immediately; withdraw all investments; close their accounts; and observe all legal obligations imposed on them while investing in cryptocurrency markets within Malaysia.
Huobi’s Advisor Justin Sun responds
Justin Sun – founder of Tron & advisor to HuoBi – stated that “HuoBi will continue providing quality service & full support for our customers in accordance with local laws & regulations” after Security Commissions order for ceasing all activities in Malaysia was issued against them