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In a significant regulatory move, the Securities Commission Malaysia (SC) has taken strict action against Huobi Global Limited and its Chief Executive Officer, Leon Li, for operating an unregistered digital asset exchange (DAX) within the country, the agency said in a recent announcement.
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Cracking Down on Unregistered Operations
The SC, taking a serious view of this regulatory violation, has publicly reprimanded the popular digital asset firm and its CEO, Leon Li, for their unlicensed operations in Malaysia. In its commitment to safeguarding investors’ interests and ensuring the compliance of platforms with local regulatory norms, the SC has underlined the necessity of registering as a Recognised Market Operator (RMO) to operate a DAX.
Huobi Global Limited has been directed to halt its operations throughout the country. This includes disabling its website and mobile application across various platforms, including the Apple Store and Google Play, the agency explained. It is also expected to stop circulating, publishing, or disseminating any advertisements to Malaysian investors via email or social media.
As the person in charge, CEO Leon Li has received explicit orders to oversee the execution of these directives, SC underscored.
Investors to Exercise Caution
Following this decision, the SC has made a strong appeal to Malaysian investors who have been using Huobi Global Limited’s services to cease trading through the platform immediately, withdraw all investments, and close their accounts.
Investors are urged to engage only with RMOs that have registered with the SC. Such entities have undergone rigorous regulatory scrutiny and are bound by stringent guidelines to ensure investors’ protection under Malaysian securities laws, the agency explained.
The SC cautioned that those investing with unregistered entities or individuals are vulnerable to fraud and might not receive the protections granted under Malaysian securities laws.