To enforce compliance with Malaysian market regulations, the Securities Commission (SC) has taken action against Huobi Global and its CEO, Leon Li. The SC has issued an order publicly directing them to cease all trading activities.
Additionally, the SC has publicly disapproved of the company and its CEO for their non-compliance with regulations. In an announcement on Monday, the regulator ordered the company to disable its website and mobile applications immediately.
This action is in response to Huobi Global’s violation of the Capital Markets and Services Act. The SC has explicitly instructed the company to cease circulating, publishing, or sending advertisements to any Malaysian investor.
The regulator also directed investors to withdraw their funds and close their accounts associated with Huobi. The decision to take this course of action has been driven by a strong commitment to ensuring the safety and protection of investors. It has reportedly been undertaken with careful consideration and prioritizes the well-being of all stakeholders involved.
The regulatory authorities responsible for overseeing these matters have placed significant emphasis on the importance of adhering to local regulatory requirements. Their focus remains firmly on prioritizing the best interests of investors and safeguarding their interests.
Malaysian Securities Regulator Monitored Huobi Since August 2022
Huobi Global has been under scrutiny by the Malaysian securities regulator since August 2022. The Securities Commission Malaysia (SCM) has raised concerns about the exchange’s operations within the country. In response to these concerns, the SCM issued an investor alert, notifying the public that Huobi Global is operating without the necessary permissions from the regulatory authority.
This regulatory action highlights the SCM’s commitment to ensuring compliance and protecting investors within the Malaysian financial market.
A company spokesperson stated:
In response to recent reports, we would like to clarify that the situation outlined pertains to the previous Huobi entity and former shareholders. This is not associated with the current Huobi platform, which adheres to strict regulatory compliance globally.
In Malaysia, Huobi Global is not the sole platform to have encountered such circumstances. Crypto exchange Binance faced a similar predicament to Huobi in the middle of 2021 when it was directed to halt operations in the region due to a lack of regulatory approval.
However, in 2022, Binance managed to establish a presence in the Malaysian market by acquiring a stake in the regulated trading platform MX Global.
According to information available on the Securities Commission Malaysia (SCM) website, only four companies are officially registered as recognized cryptocurrency exchange operators.
These include Luno Malaysia, MX Global, Sinegy, and Tokenize Technology. These four platforms have met the necessary regulatory requirements to operate within the Malaysian market.
In October 2022, Huobi Global was acquired by About Capital Buyout Fund, leading to a rebranding of the company in November of the same year.