The Malaysian securities regulating authority posted on May 22 that the cryptocurrency exchange Huobi Worldwide Limited and its CEO Leon Li have been reprimanded for operating in the Asian country illegally. The regulating authority likewise revealed that the cryptocurrency exchange has been informed to stop soliciting assets via emails and social media platforms.
Cryptocurrency Exchange informed to Disable Its Website
The Securities Commission Malaysia (SC) stated on May 22 that it had “ announced a public reprimand against Huobi Worldwide Limited, and [CEO] Leon Li for operating illegally in Malaysia.” Along with the public censure, the Malaysian securities regulating authority likewise ordered the cryptocurrency exchange platform to stop operating in the country.
Reports by the regulating authority, Huobi must “disable its website and mobile app on plenty of platforms such as Apple Store or Google Play.” In addition to ordering the cryptocurrency exchange to stop inviting investors to its platform, the statement released by the regulating authority stated the cryptocurrency exchange should likewise stop soliciting assets via emails or social media platforms.
In the statement, the Malaysian regulating authority stated the decision to bar Huobi Worldwide was created after it noted the cryptocurrency platform’s compliance failures.
“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests. The SC views this breach seriously, as operating a DAX [digital investment exchange] without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offence under Section 7(1) of the Financial resources Markets and Services Act 2007,” the Securities Commission Malaysia stated in the statement.
The Malaysian regulating authority likewise warned users of Huobi to “ instantly cease trading through its platform, withdraw all their investments, and close their accounts.”
In the meantime, the SC statement likewise advised Malaysian investors to deal with RMOs as these have “undergone strict regulatory scrutiny” and “are required to adhere” to guidelines that protect users. On the other hand, the securities regulating authority stated those investing in unlicensed entities “may not be protected under Malaysian securities laws.”