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Wednesday, October 18, 2023

Huobi Ordered to Cease Operations in Malaysia after Failure to Comply with Local Regulations

The Malaysian SC has urged the local investors to immediately cease trading via Huobi Global, withdraw their investments, and close their accounts.

A leading centralized crypto firm Huobi Global Limited ↗ and its Chief Executive Officer Leon Li have been accused of operating a digital asset exchange in Malaysia without registration. As a result, the Securities Commission of Malaysia (SC) has ordered the cryptocurrency exchange to immediately cease operations within its jurisdiction. Notably, the SC has ordered Huobi Global to disable its official website and mobile applications in Malaysia henceforth.

Huobi in Malaysia

The Malaysian regulator has also ordered Li to ensure the exchange does not issue advertisements to local investors through any platform.

“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests. The 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,” the Malaysian SC noted ↗.

As a result, the Malaysian SC has urged the local investors to immediately cease trading via Huobi Global, withdraw their investments, and close their accounts. Forward, the Malaysian SC has advised local crypto investors to use only register digital asset exchanges. Some of the registered crypto exchanges in Malaysia include Lino Malaysia, MX Global Sdn Bhd, SINEGY DAX Sdn Bhd, and Tokenize Technology (M) Sdn. Bhd. Binance announced a strategic investment in MX Global Sdn. Bhd, in order to penetrate the Malaysian crypt arena after several attempts to enter the market failed.

Notably, Huobi Global joins ↗ a long list of centralized exchanges that have already been banned from operating in Malaysia.

“Investors should exercise caution when choosing investment platforms and to always do their due diligence before making any investment decisions,” the Malaysian SC concluded.

Huobi and the Market Outlook

Huobi Global has been in operation since 2013 despite experiencing several regulatory issues with different countries including China. According to the official website, Huobi Global has more than 45 million users with a 24-hour trading volume of about $2,549,480,360 from more than 700 digital assets. The company’s core products include spot and futures trading, and Huobi Earn that significantly leverages the HT token.

The announcement to cease operations in Malaysia did not have a negative effect on the HT token, which traded around $2.94 on Monday, up approximately 1 percent in the past 24 hours. Furthermore, the HT token is mainly used by the HECO Chain (heco), which is marketed as a layer two scaling solution on the Ethereum network. According to the latest crypto price oracles, the HT token had a market capitalization of about $477,111,888 and a 24-hour trading volume of about $15,723,543.

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Kaylie Pferten
Kaylie Pferten
A pilot of submersible crafts in a former life, now married to my husband David and writing about investment advice.

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