Bitrabo Editorial
The Securities Commission (SC) has taken action against cryptocurrency exchange Huobi Global and its CEO, Leon Li. In an effort to enforce compliance with Malaysian market regulations, the SC publicly directed Huobi Global to cease all trading activities. The commission has also publicly disapproved of the company and its CEO for their non-compliance with regulations. The regulator has ordered the company to disable its website and mobile applications immediately.
These actions are a result of Huobi Global’s violation of the Capital Markets and Services Act, and the SC has instructed the company to stop sending ads to Malaysian investors. Investors have been advised to withdraw their funds and close their accounts with Huobi. The SC is committed to protecting the interests of all investors and has emphasized compliance with local regulatory requirements.
Monitoring Since August 2022
Since August 2022, Huobi Global has been under scrutiny by Malaysia’s securities regulator, the Securities Commission Malaysia (SCM). The regulator raised concerns about the exchange’s operations within the country and issued an alert to the public stating that Huobi Global is operating without necessary regulatory approval. The SCM is determined to ensure compliance and safeguard investors within Malaysia’s financial market.
A company spokesperson clarified that this situation pertains to the previous Huobi entity and former shareholders, not associated with the current Huobi platform, which adheres to strict regulatory compliance globally.
Currently, only four companies are officially recognized as cryptocurrency exchange operators in Malaysia: Luno Malaysia, MX Global, Sinegy, and Tokenize Technology. These four platforms have met regulatory requirements to carry out cryptocurrency trading within the Malaysian market. In the past, crypto trading platform Binance faced a similar predicament to Huobi, but it was able to establish operations in Malaysia by acquiring a stake in the regulated trading platform, MX Global.
Huobi Global was acquired by About Capital Buyout Fund in October 2022, leading to a rebranding of the company in November of the same year.
Featured Image From Tech in Asia, Charts From TradingView.com