The Securities Commission of Malaysia (SC) has reportedly accused Huobi of operating a cryptocurrency exchange without the necessary permits.
As such, the watchdog has asked the company to disable its website and mobile application in the country.
phoby on target
As report According to the Malaysia Reserve, SC alleged that Huobi and its CEO Leon Li illegally operated a digital asset business in the Asian country.
Regulators have ordered the company to suspend domestic operations, including websites and mobile applications on multiple platforms such as the Apple Store and Google Play. He also argued that Huobi should stop sending any advertisements (through emails and social media interactions) to Malaysian investors.
“This decision is in light of concerns about the platform complying with local regulatory requirements and protecting the interests of investors,” SC said.
The oversight body considers Huobi’s violations to be a serious matter, and operating a DAX without securing SC’s registration as a Recognized Market Operator (RMO) is a violation of Article 7 of the Capital Markets and Services Act 2007. It outlines that it is a violation under Section 1.
It then advised local investors who used the exchange’s services to stop trading on the platform, withdraw their assets and close their accounts.
Huobi’s efforts in Hong Kong
The company has already indicated its intention to strengthen its presence in other parts of Asia, as opposed to regulatory issues in Malaysia.
Justin Sun – Founder of Tron and member of Huobi’s Global Advisory Board – Said Earlier this year, it emerged that the exchange had applied for a trading license from Hong Kong’s supervisory authority.
“This is a big step for a major cryptocurrency exchange and a demonstration of the company’s ongoing commitment to operate in a compliant and regulated manner,” he added.
Additionally, the company plans to launch a new venue called Huobi Hong Kong in a special administrative region of China, which will “fully comply with local regulations and offer a wide range of trading pairs and services to its clients.”
Hong Kong authorities have recently embarked on a crypto-promoting path, positioning the region as a digital asset hub. Major exchanges like OKX sought While the region has obtained regulatory approval, local crypto firms and banks have started A meeting to facilitate their interaction.
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