The Securities Commission Malaysia (SCM) has ordered Huobi Global to cease its operations in Malaysia. As part of the enforcement action, Huobi has been directed to remove its website and mobile apps from the Apple Store and Google Play and halt its communication with Malaysian users via email and social media for promotional purposes.
In an official statement released on May 22, 2023, the regulator revealed its decision was primarily driven by concerns over Huobi’s compliance with local regulatory requirements. Despite attempts, Huobi could not obtain registration from the SCM, leading to the enforcement action.
The regulator also advised Malaysian investors to withdraw their funds, close their accounts, and refrain from trading on the platform.
Malaysia’s securities regulator began investigating Huobi in August 2022, when it issued an investor notice warning that the exchange was operating illegally in the country. Huobi responded by stating that it is currently engaged in discussions with Malaysian officials regarding its operations in the country.
This recent development follows a similar setback for another major cryptocurrency exchange, Binance, in the Malaysian market. Though Binance has re-established its presence in Malaysia by acquiring a stake in MX Global’s licensed trading platform in 2022, it was earlier ordered to cease operations in the region in mid-2021 due to a lack of required governmental clearance.
Presently, the Securities Commission Malaysia lists only four authorized cryptocurrency exchange operators on its website. These include Tokenize Technology, MX Global, Sinegy, and Luno Malaysia.
This development is another addition to the long list of problems plaguing Huobi Global. The crypto company was forced to shut down its operations in China due to a government crackdown on cryptocurrencies. Recently, Huobi announced that it is discontinuing its services for users in Singapore, citing the need to adhere to Singaporean law.
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