Huobi has been accused by the Securities Commission Malaysia (SC) for operating a cryptocurrency exchange without proper authorization.
As a result, the SC has requested the company to deactivate its Malaysian website and mobile application.
Huobi Under Fire
According to The Malaysian Reserve, the SC has accused Huobi and CEO Leon Li of conducting digital asset activities illegally in Malaysia.
The SC has demanded that the firm stop all local operations including its website and mobile app, on various platforms such as Apple Store and Google Play. It has also prohibited Huobi from sending any ads (via email or social media interaction) to Malaysian investors.
“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests,” the SC stated.
The SC considers Huobi’s breach a severe issue, stating that operating a DAX without securing the SC’s registration as a Recognised Market Operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007.
Consequently, local investors who have used Huobi’s services have been advised to stop trading on the platform, withdraw their assets, and close their accounts.
Huobi’s Plans in Hong Kong
Despite regulatory issues in Malaysia, Huobi has expressed intentions to expand its presence in other parts of Asia.
Justin Sun, Tron’s Founder, and a member of Huobi’s Global Advisory Board, mentioned earlier this year that the exchange has applied for a trading license with Hong Kong’s regulatory authorities.
“This is a major step for the major cryptocurrency exchange and a sign of its continued commitment to operating in a compliant and regulated manner,” he added.
Furthermore, the company will launch a new venue in Hong Kong called Huobi Hong Kong, which will be fully compliant with local regulations and offer a range of trading pairs and services to customers.
Hong Kong’s authorities have recently taken a pro-crypto stance, positioning the region as a digital asset hub. Leading exchanges like OKX have obtained regulatory licenses in the area, while local cryptocurrency firms and banks have initiated a meeting to discuss their interactions.