Huobi Global has been ordered by the Securities Commission Malaysia to cease all operations after failing to register to operate in Malaysia.
After receiving an enforcement order from Malaysia’s securities regulator, Huobi Global has been told to stop operating there.
Huobi Global is required to stop its operations after failing to register as a cryptocurrency exchange operator, according to a formal statement from Securities Commission Malaysia (SCM) on May 22. The company has been ordered to disable its website and mobile apps on Google Play and the Apple Store.
The cryptocurrency exchange also expects to discontinue email and social media marketing to Malaysian consumers in order to promote its goods and services.
SCM stated that their decision had been driven by issues over Huobi’s “compliance with local regulatory requirements.” The regulator also instructed Malaysian investors to stop trading on the platform, withdraw funds, and close their accounts because the company failed to obtain an SCM registration.
Following the company’s acquisition by About Capital Buyout Fund the previous month, Huobi Global received a rebranding in November 2022. In response to news of the SCM’s enforcement action, a company spokesperson stated that the order does not apply to Huobi, which continues to operate despite a change in ownership last year.
We want to make it clear that the scenario mentioned only applies to the former Huobi entity and its former shareholders in answer to recent reports. This is not related to the current Huobi platform, which follows strict global regulatory compliance.
Since August 2022, when the SCM issued an investor advisory warning that the exchange was operating illegally in Malaysia, Huobi Global has been the target of the country’s securities authority.
Huobi stated that it was in talks with Malaysian regulators concerning its regional activities after making the public announcement. In order to provide cryptocurrency spot and futures trading, the company initially formed a brokerage firm called Huobi Labuan in November 2020 for a brief nine-month period.
By acquiring a stake in licensed trading platform MX Global in 2022, cryptocurrency exchange Binance established itself in the Malaysian market. Midway through 2021, Binance experienced a similar problem to Huobi when it was told to stop operating in the region following a lack of necessary regulatory approval.
According to the SCM website, there are only four companies registered as authorized cryptocurrency exchange operators. This comprises Tokenize Technology, MX Global, Sinegy, and Luno Malaysia. In August 2022, the list was last updated.
Discussion about this post