The Malaysian Securities Commission (SC) has reprimanded crypto exchange Huobi and its Chief Executive Officer (CEO), Leon Li, for illegal operations in the country. In an order written to the crypto firm on Monday, the Malaysian regulator ordered Huobi to shut down operations in the Asian region immediately.
Furthermore, the SC ordered Huobi to immediately take down its website and remove access for Malaysian residents to its mobile application on the Apple Store, Google Store, and other digital platforms. Huobi Global Limited was also ordered to refrain from sending circulars, product advertisement messages, and emails to Malaysian investors.
Concerns Over Huobi’s Regulatory Compliance
The decision to halt Huobi’s operations in the country comes after concerns by the Malaysian regulator as to the compliance culture of the exchange with its local requirements. The SC also discovered that Huobi operated illegally as a digital asset exchange in the country.
According to SC, Huobi does not have an official license, nor is it a Recognized Market Operator (RMO). The SC noted this is a huge offense worthy of operation cessation in the country as it breaks Section 7(1) of the Capital Markets and Service Act 2007.
Despite Malaysia legalizing Bitcoin after noting that it is the future of finance, the country is bent on protecting its users from bad actors in the crypto industry. Malaysian authorities have cracked down on illegal mining and electricity theft, which are common in the country.
SC Urges Malaysian Investors to Cease Huobi Usage
In a post on its website, SC urged Malaysian investors to cease using Huobi’s platform for crypto trading and investments, withdraw all their money, and close their accounts. The regulator noted that the exchange does not protect investors’ interests by operating illegally.
The SC also encouraged investors to look out for exchanges that are not RMOs and desist from using their platforms. According to the SC, cases of fraud and unsecured investments would be minimized if investors refrained from using unregistered exchanges in the country.
“Investors should exercise caution when choosing investment platforms and always do their due diligence before making any investment decisions. Additionally, 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 stated.
