The Securities Commission Malaysia (SC) has allegedly accused Huobi and its CEO Leon Li of running a cryptocurrency exchange without the necessary authorization. This offence led the watchdog to urge the company to disable its website and mobile application in the country. As reported by The Malaysian Reserve, the regulator ordered the firm to cease its domestic operations, including its website and mobile applications on several platforms such as Apple Store and Google Play. It also insisted that Huobi should stop sending any advertisements 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 Impact of Huobi’s Actions
The watchdog regards Huobi’s breach as a serious issue and outlined 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. In response to this development, the SC advised local investors who have used the exchange’s services to cease trading on the platform and close their accounts, while urging Huobi to comply with relevant regulations.
On the other hand, Huobi has expressed intentions to strengthen its presence in Asia. Justin Sun, Tron’s Founder and a member of Huobi’s Global Advisory Board, earlier this year mentioned that Huobi 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.
Huobi’s Future Plans in Hong Kong
Furthermore, Huobi will launch a new venue in the special administrative region of China called Huobi Hong Kong, which will be fully compliant with local regulations and offer a range of trading pairs and services to customers. The authorities in Hong Kong have recently positioned the region as a digital asset hub, with leading exchanges like OKX seeking regulatory permits in the area, and local cryptocurrency firms and banks initiating meetings to smooth their interactions. Contrastingly, Huobi has been faced with regulatory hurdles in Malaysia.
The SC views the issue as serious and is accusing Huobi and its CEO Leon Li of illegal operations in the country. The regulator ordered the company to cease its domestic operations, including its website, mobile application, and sending any advertisements. Huobi has expressed intentions of building a stronger presence in Asia, having already applied for a trading license in Hong Kong’s watchdogs. With the new launch of Huobi Hong Kong, the company hopes to remain fully compliant with local regulations while offering a wide range of trading pairs and services to customers.