Malaysian Regulator Orders Huobi to Halt its ‘Illegal’ Operations in the Country (Report)

The Securities Commission Malaysia (SC) has reportedly accused Huobi of running a cryptocurrency exchange without the required approval.

Because of this, the watchdog urged the company to disable its website and mobile application in the country.

Huobi Sa Target

as reported in The Malaysian Reserve, the SC alleged that Huobi and its CEO – Leon Li – operated a digital asset business in the Asian country illegally.

The regulator ordered the company to stop domestic operations, including its website and mobile application on several platforms such as the Apple Store and Google Play. It also insisted that Huobi should stop sending any advertisement (whether through e-mail or social media interaction) to Malaysian investors.

“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protection of investors’ interests,” the SC said.

The watchdog considers Huobi’s violation a serious issue stating that running a DAX without securing SC registration as a Recognized Market Operator (RMO) is a violation under Section 7(1) of Capital Markets and Services Act 2007.

Subsequently, it advised local investors using exchange services to stop trading on the platform, withdraw their assets, and close accounts.

Huobi’s Efforts in Hong Kong

Contrary to its regulatory problems in Malaysia, the entity has already shown intentions to strengthen its presence in the rest of Asia.

Justin Sun – Founder of Tron and member of Huobi’s Global Advisory Board – SAYS earlier this year the exchange applied for a securities trading license in Hong Kong.

“This is a major step for the major cryptocurrency exchange and a sign of its continued commitment to operate in a compliant and regulated manner,” he added.

In addition, the company will launch a new area in the special administrative region of China called Huobi Hong Kong that “fully complies with local regulations and offers a variety of trading pairs and services to customers .”

Hong Kong authorities have recently taken a pro-crypto path, positioning the region as a digital asset hub. Top exchanges like OKX HUNTED regulatory permission in place, while local cryptocurrency companies and banks BEGINS a meeting to smooth their interaction.