Securities Commission Malaysia Orders Huobi Global to Cease Operations in the Country
by Huobi Global’s Unregistered Status Prompts Regulatory Intervention
SC Takes Firm Action Against Huobi Global
In a bold move to ensure compliance within Malaysia’s digital asset landscape, the Securities Commission Malaysia (SC) has issued an order demanding that Huobi Global, a leading digital asset exchange, immediately cease its operations within the country. The SC has cited the exchange’s failure to obtain the necessary registration as the primary reason for its intervention.
Unregistered Operation Sparks Regulatory Concerns
Under the Capital Markets and Services Act, any digital asset exchange operating without obtaining registration from the SC as a Recognised Market Operator commits a severe offense. By engaging in business activities without proper authorization, Huobi Global has raised significant concerns regarding the security and protection of Malaysian investors participating on its platform.
Advertisements Prohibited, Investors Urged to Take Action
As part of the order, the SC has explicitly instructed Huobi Global to immediately discontinue circulating, publishing, or sending any form of advertisements targeted at Malaysian investors. This prohibition aims to prevent further engagement between the exchange and potential investors who may be unaware of the company’s unregistered status.
In addition, the SC has issued a strong advisory to Malaysian investors currently using the Huobi Global platform. They are urged to cease trading on the exchange, withdraw their funds, and proceed with closing their accounts. This proactive measure is intended to safeguard investors’ interests and protect their assets from any potential regulatory risks associated with Huobi Global’s non-compliance.
CEO Leon Li Tasked with Compliance Oversight
To ensure strict adherence to the SC’s directives, CEO Leon Li has been specifically instructed to oversee the implementation of the necessary measures. As the head of Huobi Global, Li holds a crucial role in executing the required actions outlined by the regulator. The SC expects full cooperation and compliance from both Huobi Global and its leadership.
Huobi Global’s Response Awaited
The SC’s decision has attracted significant attention within the digital asset industry, prompting anticipation regarding Huobi Global’s response to the regulatory order. As of now, the company has not provided an official comment or statement regarding the situation. Market participants and industry observers eagerly await the exchange’s reaction and any proposed steps to address the concerns raised by the SC.
Upholding Integrity and Security in the Capital Markets
The Securities Commission Malaysia remains steadfast in its commitment to maintain the integrity and security of Malaysia’s capital markets. The regulator’s proactive measures against Huobi Global serve as a clear reminder to all digital asset exchanges and market operators to comply with the established regulatory framework. By enforcing the necessary regulations and safeguards, the SC aims to foster a trusted and well-regulated environment for both investors and industry participants.
Disclaimer
The information presented in this Blogpost is solely for educational and informative purposes and should not be misconstrued as investment, financial or legal advice. Cryptocurrencies are a highly unstable and speculative market and their worth is susceptible to substantial fluctuations. Therefore, it is advisable to conduct personal research and seek counsel from qualified experts before making any financial decisions.
