Malaysia’s financial regulator, the Security Commission (SC), has ordered Huobi, one of the largest crypto exchanges in the world, to services in Malaysia. According to the regulator, Huobi provides services in the Southeast Asian country without a license, which is prohibited.
🔒 SC has issued a public reprimand against Huobi Global Limited to cease operations in Malaysia, disable website and mobile app on platforms like Apple Store and Google Play.
📰 Read the full release here: https://t.co/UY4dVGAHRh pic.twitter.com/Fe6xSqftZr
— SC Malaysia (@SecComMalaysia) May 22, 2023
Huobi will stop in Malaysia immediately
The exchange must immediately stop its activity in the country. Local operations are halted, communication with customers must stop and the website and app must be offline. The move comes after “concerns about Huobi’s compliance with local regulatory requirements and the protection of investors’ interests.” Huobi has not yet commented on the news.
The Malaysian SC is the equivalent of the US Security and Exchange Commission (SEC). On the other side of the world, the SEC is also busy making its mark on the US crypto sector. Several US crypto platforms have already been targeted by the commission. Some platforms even find the policy of the SEC so hostile that a departure from the United States is being considered.
Major legislative developments
The destinations of this crypto exodus from America are East Asia and the European Union. Hong Kong put into effect a legislative framework for the crypto industry earlier this year and expressed its ambition to become a crypto hub.
But the European Union is also making great strides. Last month, the European MiCa law was approved. This overarching crypto law will provide more clarity about the doings and don’ts of companies active in the European crypto sector.
Legislative clarity is not only beneficial for companies, but also for customers. Because crypto is no longer in a gray area, major European institutions may be more likely to show interest. The first parts of the MiCa law will come into effect from next year.
However, crypto investors will be able to enjoy slightly less freedom when the law becomes active. For example, to prevent money laundering and crime within the crypto markets, there will be a limit of 1000 euros on anonymous transactions. There will also be more rules on tax issues for crypto investors.