Following an enforcement action by the Malaysian securities regulator, Huobi Global has been instructed to cease operations in Malaysia.
Huobi has not registered as a crypto exchange
According to a official statement of the Securities Commission Malaysia (SCM) on May 22, Huobi has failed to register as a cryptocurrency exchange operator, and will therefore be forced to cease all of its activities. The company has also received instructions to disable its website and mobile applications in both the Apple Store and Google Play.
The cryptocurrency exchange is also expected to stop advertising its products and services to Malaysian users through email and social media platforms.
The SCM has stated that its decision stems from concerns about Huobi’s compliance with local legal requirements. The regulator has been unsuccessful in registering Huobi with the SCM, and has also ordered Malaysian investors to stop trading on the platform, withdraw their funds and close their accounts.
In sight for a long time
Since August 2022, Huobi has been in the crosshairs of the Malaysian securities regulator after the SCM issued an investor warning saying the exchange was operating in the country without the required permissions.
Following the public announcement, Huobi stated that it was in talks with Malaysian regulators about its activities in the region. In November 2020, the company had initially launched a brokerage firm called Huobi Labuan, which was allowed to offer cryptocurrency spot and derivatives trading for a preliminary period of nine months.
Earlier in 2022, cryptocurrency exchange Binance managed to establish a presence in the Malaysian market by taking a stake in MX Global’s regulated trading platform. Binance found itself in a similar situation to Huobi in mid-2021 and was ordered to cease operations in the region as it lacked the required regulatory approval.
According to the SCM’s website, only four companies are registered as licensed operators of cryptocurrency exchanges. This list includes Luno Malaysia, MX Global, Sinegy, and Tokenize Technology. The list was last updated in August 2022.