SC Malaysia Orders Huobi to Cease Operations

According to the recent reports published, Huobi Global Ltd, a Hong Kong-based cryptocurrency trading platform, was recently ordered to stop operating in Malaysia by the Securities Commission Malaysia (SC) for operating an unlawful digital asset exchange (DAX) in the region.

Huobi to End Operations in Malaysia?

Huobi has been told to cease operating its online platform and mobile apps available on Apple Store, Google Play, and other digital platforms, according to a statement made by SC. In addition, SC has expressly tasked the Huobi CEO with making sure that the instructions are followed.

The SC’s decision was taken in response to growing worries about the platform’s adherence to local regulatory standards and safeguarding of investors’ interests.

No Advertisements Allowed for Huobi

The regulatory agency said that “Huobi has also been directed to cease circulating, publishing or sending any advertisements – whether via emails or social media platforms – to Malaysian investors,”while adding: 

“SC views this breach seriously, as operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007.”

Trading via Licensed RMOs

The regulatory organization recommends investors to only trade with licensed RMOs since they have been through rigorous regulatory review and are required to abide by tight norms and securities laws. 

“Those who invest with unlicensed or unregistered entities or individuals are exposed to risks such as fraud and may not be protected under the Malaysian securities laws,” SC states.

Maintain Caution 

Additionally, it cautioned investors to take precaution when choosing investing sites and to conduct thorough research before making an investment choice. The SC said: “By taking these precautions, investors can safeguard their investments and avoid falling victim to fraudulent schemes.”

Meanwhile, a report from July of the last year revealed that Huobi Technology Holdings Ltd. chose to close its office in Thailand since the local regulatory framework was no longer appropriate.