Malaysia Orders Huobi Global to Cease Operations
- The Securities Commission Malaysia ordered Huobi Global to stop all of its activities in the country as it was not registered with the regulator, and was operating illegally.
- The exchange was also directed to disable its website and mobile applications, as well as cease all advertising of its products and services in the country.
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Malaysia’s securities regulator has ordered Huobi Global Limited to cease its operations in the country as it was not registered as a cryptocurrency exchange operator, the regulator said in a press release on 22 May.
According to the announcement, Huobi Global failed to register as a Recognised Market Operator (RMO) with the Securities Commission (SC) Malaysia, and is now ordered to cease all of its activities in the country. The regulator issued a public reprimand against the platform and its CEO Leon Li for operating illegally in Malaysia, and urged users in the country to withdraw their assets. The press release reads:
“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. Investors are strongly advised to invest and deal with RMOs that are registered with the SC.”
The securities regulator also directed the exchange to disable its website in the country, and remove its mobile applications from Apple Store and Google Play. The company was also ordered to cease all advertising of its products and services to Malaysian users, including circulating, publishing, and sending ads over email and social media platforms.
This is not the first time the Malaysian securities regulator has found faults with Huobi Global, with the SC issuing an investor alert back in August 2022 warning citizens that the exchange was operating in the country without the necessary licenses. So far, only four companies — Luno Malaysia, MX Global, Sinegy, and Tokenize Technology — have been able to obtain the RMO license for cryptocurrency exchanges, a list that was last updated in August 2022.
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- Customers in Japan who wished to continue using the exchange under the Binance name will have to undergo new identity verification and KYC checks.
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