The post Registration Violation Prompts Malaysia to Order Huobi Global to Cease its Activities appeared first on Coinpedia Fintech News
The Securities Commission Malaysia (SC) has recently made a move against Huobi Global Limited and its Chief Executive Officer, Leon Li, for operating a digital asset exchange (DAX) within Malaysia without proper registration.
Consequently, the SC has publicly reprimanded Huobi Global Limited and Leon Li for their unauthorized operations within Malaysia, citing their violation of registration requirements.
SC orders Huobi Global to stop its operations
Furthermore, as part of the regulatory action, the SC has instructed Huobi Global Limited to immediately halt its operations within the country. This includes disabling its website and mobile applications across various platforms, such as the Apple Store, Google Play, and other digital application platforms.
Huobi Global Limited has also been mandated to discontinue the circulation, publication, or dissemination of any advertisements, whether through email or on social media platforms, targeting Malaysian investors. In addition, Leon Li, the CEO of Huobi Global Limited, has received specific instructions to ensure compliance with the aforementioned directives.
This action has been taken due to concerns regarding the platform’s compliance with local regulatory requirements and the protection of investors’ interests. The Securities Commission Malaysia (SC) considers this breach to be a serious matter, as operating a digital asset exchange (DAX) without obtaining the SC’s registration as a recognized market operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007.
The SC strongly advises Malaysian investors who have been using the services of Huobi Global Limited to cease trading through its platform immediately, withdraw all their investments, and close their accounts.
According to Justin Sun, the founder of Tron and an advisor to Huobi, he stated to The Block that Huobi does not currently operate in Malaysia. Furthermore, he clarified that Leon is not the CEO of Huobi and that the company does not have a CEO role at present.