May 23, 2023 12:25
The Securities Commission Malaysia (SC) has ordered cryptocurrency exchange Huobi Global to cease operating in the Southeast Asia country, noting that the platform possesses no requisite authorization or registration. The securities regulator also asked the exchange to disable its website and mobile
application on various platforms such as Apple and Google Play Stores.
SC announced the enforcement action on Tuesday, noting that it also ordered Huobi to stop circulating or publishing any advertisements targeted at Malaysian investors, whether
through email or social media platforms. The watchdog said it was concerned about the Seychelles-based crypto exchange's compliance with local regulatory requirements and the protection of
investors' interests.
According to SC, Huobi's lack of registration as a Recognized Market Operator (RMO) violates the country's capital markets law. As a result, the financial markets supervisor ordered Leon
Li, Huobi's CEO, to ensure compliance with the directives.
Finance Magnates reported that Huobi secured initial approval to operate in Malaysia in late 2020. The firm launched 'Huobi Labuan' after the watchdog granted it an initial nine-month period to meet its regulatory standards.
In August 2021, Binance also shut down its services in Malaysia after SC slammed the platform for operating illegally in the country.
SC Warns Malaysian Investors
In the announcement, SC also warned Malaysian investors who patronize Huobi to immediately halt trading on the crypto exchange's platform. It further advised them to withdraw their investments from the platform and shut down their accounts.
Additionally, the regulator urged investors to engage with only RMOs which it said have undergone "strict regulatory scrutiny" and are required to adhere to strict guidelines to protect investors
under the country'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," SC said in the statement.
Meanwhile, while Malaysia is participating in Project Dunbar, a central bank digital currency exercise led by the Bank of International Settlements (BIS) Innovation Hub in partnership with Australia, Singapore and South Africa's apex monetary authorities, the country appears not friendly towards accepting crypto as a legal tender.
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This article was written by Pedro Ferreira at www.financemagnates.com.
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