Malaysia’s Securities Exchange Commission (SC) has ordered Huobi Global to cease all operations in the country. The regulatory stated that Huobi and its chief executive officer Leon Li, have been operating in the country illegally without the necessary registration. The SC stated:
In addition, the SC has ordered Huobi Global Limited to stop its operations in the country, including to disable its website and mobile application on several platforms such as Apple Store, Google Play and any other digital application platform.
Huobi Global Limited has also been directed to cease circulating, publishing or sending any advertisements, whether in email or on social media platforms, to Malaysian investors. Leon Li, as the CEO, has also been specifically ordered to ensure that the above directives are carried out.
Huobi Has Breached Malaysian Securities Laws
The SC added that the decision was made after Huobi failed to comply with local regulatory requirements.
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 offence under Section 7(1) of the Capital Markets and Services Act 2007.
Malaysian investors were further urged to only transact with recognised market operators registered with the SC.
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.Registered RMOs have undergone strict regulatory scrutiny and are required to adhere to strict guidelines so that investors are protected under Malaysia’s 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 Malaysian securities laws.