The Malaysian Securities Commission (SC) took action against Huobi Global Limited and its Chief Executive Officer Leon Li for operating an unregistered digital asset exchange (DAX) in Malaysia.
Malaysian Securities Commission Asks Houbi to Stop Operations
Accordingly, SC has issued a public reprimand against Huobi Global Limited and Leon Li for operating illegally in Malaysia.
In addition, SC has ordered Huobi Global Limited to cease its operations in the country, including deactivating its website and mobile app on various platforms such as Apple Store, Google Play and other digital application platforms.
Huobi Global Limited has also been directed to stop distributing, posting or sending any advertisements to Malaysian investors via email or social media platforms.
As CEO, Leon Li is also specifically ordered to ensure that the above directives are carried out.
This decision came after concerns over the platform's compliance with local regulatory requirements and the protection of investors' interests.
SC takes this violation seriously, as operating a DAX without SC's registration as a Recognized Market Operator (RMO) is a crime under the Capital Markets and Services Act 2007.
SC urges Malaysian investors using Huobi Global Limited to immediately stop trading on the platform, withdraw all investments and close their accounts.
Investors are strongly advised to invest in and trade with SC registered RMOs. Registered RMOs have undergone strict regulatory scrutiny and investors are required to follow strict guidelines to be protected under Malaysia's securities laws.
Those who invest in unlicensed or unregistered entities or individuals are exposed to risks such as fraud and may not be protected under Malaysian securities laws.
*Not investment advice.