HomeCrypto RegulationSecurities Commission Malaysia Cracks Down on Huobi Global

Securities Commission Malaysia Cracks Down on Huobi Global

The Securities Commission Malaysia (SC) has initiated stern action against Huobi Global Limited and its CEO, Leon Li, for allegedly operating an unregistered digital asset exchange (DAX) in Malaysia.

Huobi Global and its Chief Executive have been issued a public reprimand for their illicit operations in Malaysia, marking a clear stance against unlawful cryptocurrency operations in the country.

Strict Directives for Huobi Global

In a further blow to Huobi Global, the SC has ordered the exchange to halt all operations within Malaysia. This includes disabling its website and mobile application across platforms like the Apple Store, Google Play, and other digital application providers.

Moreover, Huobi Global has been instructed to stop all promotional activities directed towards Malaysian investors. This includes sending advertisements via email or social media platforms. As the CEO, Leon Li is tasked to ensure the compliance with these directives.

Protecting Investors’ Interests?

The SC’s action against Huobi Global stems from concerns over the platform’s compliance with local regulatory requirements and the need to protect the interests of investors. Operating a DAX without registration as a Recognised Market Operator (RMO) is considered an offence under Section 7(1) of the Capital Markets and Services Act 2007, a fact taken seriously by the SC.

Urgent Advice for Malaysian Investors

In the wake of these developments, the SC urges Malaysian investors using Huobi Global’s services to cease all trading activities, withdraw their investments, and close their accounts immediately.

Importance of Registered Market Operators

The SC strongly advocates investing through registered RMOs which have undergone strict regulatory scrutiny and are bound by stringent guidelines. This ensures that investors are shielded under Malaysia’s securities laws. Those who invest through unlicensed or unregistered entities expose themselves to potential risks, including fraud.

Due Diligence: The Key to Safe Investments

The SC emphasises the necessity for investors to exercise caution when selecting investment platforms and to conduct thorough due diligence before making investment decisions.

Dan K
Dan K
Dan is a seasoned blockchain reporter and cryptocurrency enthusiast with a passion for making complex topics easily digestible for a broad audience. With years of experience covering the dynamic world of blockchain technology and digital assets, Dan has established himself as a respected voice in the CoinNews community.

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