Huobi Ordered To Stop Operating in Malaysia
Huobi Global was first placed on an investor alert list last year for servicing Malaysia-based crypto traders without proper registration
Grey82/Shutterstock modified by Blockworks
Malaysia’s securities regulator said Monday it has taken action against Huobi Global and its CEO, Leon Li, for operating a crypto exchange without prior registration.
The Securities Commission Malaysia (SC), which oversees the regulation of securities and digital assets, issued a public reprimand denouncing Huobi for operating “illegally.”
The agency first placed Huobi on its investor alert list last year for operating without registering as a “Recognised Market Operator, viewed as a serious offence under the Capital Markets and Services Act.
The SC has directed Huobi to stop all activities in the region, disable its website and mobile apps across various platforms such as Apple and Google app stores. It also must stop promotional activities targeting local investors.
“The SC urges Malaysian investors who have been using Huobi Global Limited to immediately cease trading through its platform, withdraw all their investments and close their accounts,” the agency said.
The SC and Huobi Global, which is headquartered in the Seychelles, did not immediately respond to Blockworks’ request for comment. Advisor Justin Sun earlier this year suggested Huobi sought to relocate its Asian headquarters to Hong Kong from Singapore.
The SC urged investors to only interact with market operators registered with the regulator. “Those who invest with unlicensed or unregistered entities or individuals are exposed to risks such as fraud and may not be protected under Malaysian securities laws,” the notice said.
“Investors should be wary of investment schemes that promise high returns with little risk, as they may be too good to be true,” the regulator said. “By taking these precautions, investors can safeguard their investments and avoid falling victim to fraudulent schemes.”
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