The Malaysian securities regulatingย authority postedย 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 regulatingย 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 โ announced a public reprimand against Huobi Worldwide Limited, and [CEO] Leon Li for operating illegally in Malaysia.โ Alongย with the public censure, the Malaysian securities regulatingย authority likewise ordered the cryptocurrency exchange platform to stop operating in the country.
Reportsย by the regulatingย authority, Huobi must โdisable its website and mobile appย on plentyย of platforms such as Apple Store or Google Play.โ In addition to ordering the cryptocurrency exchange to stop inviting investors to its platform, the statement released by the regulatingย authority stated the cryptocurrency exchange should likewise stop soliciting assets via emails or social media platforms.
In the statement, the Malaysian regulatingย authority stated the decision to bar Huobi Worldwide wasย created after it noted the cryptocurrency platformโs compliance failures.
โThis decision comesย after concerns about the platformโs compliance with local regulatory requirements and protecting investorsโ interests. The SC views this breach seriously, as operating a DAX [digital investment exchange] without obtaining the SCโs registration as a Recognised Market Operator (RMO) is an offence under Section 7(1) of the Financialย resources Markets and Services Act 2007,โ the Securities Commission Malaysia stated in the statement.
The Malaysian regulatingย authority likewise warned users of Huobi to โ instantly cease trading through its platform, withdraw all their investments, and close their accounts.โ
Inย theย meantime, the SC statement likewise advised Malaysian investors to deal with RMOs as these have โundergone strict regulatory scrutinyโ and โare required to adhereโ to guidelines that protect users. On the other hand, the securities regulatingย authority stated those investing in unlicensed entities โmay not be protected under Malaysian securities laws.โ
