SCM claims Huobi Global failed to obtain the necessary registration.
In a move to clamp down on unauthorized crypto activities, Malaysia's Securities Commission (SCM) has ordered Huobi Global, the popular cryptocurrency exchange, to cease its operations within the country.
On May 22nd, SCM released an official statement stating that Huobi Global failed to secure the required registration to operate as a cryptocurrency exchange in the country.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
What is a Crypto Wallet? (Explained With Animation)
Therefore, the regulator mandated the company to suspend all activities, including the deactivation of its website and mobile applications on the Apple Store and Google Play.
Huobi Global has also been instructed to discontinue advertising its products and services to Malaysian users through various channels, including email and social media.
The regulatory body attributed this decision to the concerns over Huobi's inability to comply with local regulatory requirements. As a result, the SCM has urged Malaysian investors to halt trading on the platform and has advised them to withdraw funds and close their accounts.
Responding to the news of SCM's enforcement action, a spokesperson for the company clarified the matter by stating:
The situation outlined pertains to the previous Huobi entity and former shareholders. This is not associated with the current Huobi platform, which adheres to strict regulatory compliance globally.
In October 2022, the company was acquired by About Capital Buyout and was rebranded.
Huobi Global has been on SCM's radar since August 2022, when the regulator issued an investor alert indicating that the exchange was functioning without the necessary permissions. Subsequently, Huobi claimed to be in talks with Malaysian regulators regarding its regional operations.
According to SCM's website, only four registered cryptocurrency exchanges operate in the country: Luno Malaysia, MX Global, Sinegy, and Tokenize Technology.
This enforcement action serves as a reminder of the importance of compliance with local regulatory requirements in the cryptocurrency industry and underscores the Malaysian regulator's determination to ensure adherence to these regulations.
