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- Huobi is reportedly experiencing a crisis.
- The exchange has now drawn the ire of Malaysian market regulators.
- Malaysia represents one of Huobi’s largest markets.
Judging by trust score ratings and 24-hour trading volume, Huobi remains among the largest crypto exchanges in the world. But the firm has been rumored to be in a crisis since the start of the year when it engaged in several cost-cutting measures.
Now the crypto exchange heavily linked with Tron Founder Justin Sun is being pushed out of the Malaysian market by regulators, a blow to already dwindling trading volumes.
Malaysian Securities Commission Orders Huobi to Shutter Operations
In a statement on Monday, May 22, the Malaysian Securities Commission disclosed that it had taken enforcement action against Huobi Global and its Chief Executive Officer, Leon Li, for operating in the country without a license.
As part of the action, the regulator has ordered Huobi to shutter its operations in Malaysia, including access to its websites and applications. The Securities Commission also urged Malaysian investors to take their funds off the crypto exchange.
The Securities Commission Malaysia has taken action against Huobi Global Limited for operating a digital asset exchange in Malaysia without registration, including to disable its website and mobile application on several platforms such as Apple Store, Google Play and any other…
— Wu Blockchain (@WuBlockchain) May 22, 2023
Per a February 2022 survey, Malaysians comprised 4.24% of Huobi’s volume, representing its 5th largest market.
The crypto exchange has reportedly struggled since it shut down operations in China following a government crackdown on the crypto industry. The latest crackdown on the exchange in Malaysia is another potentially significant blow to the firm, which laid off 20% of its staff in cost-cutting measures in January.
Huobi did not immediately respond to a request for comment and has yet to issue a statement in response to the Malaysian Securities Commission’s order.
On the Flipside
- Huobi is working on expanding to Hong Kong.
- Huobi Global Advisor Justin Sun is reportedly looking to sell his majority stake in the firm.
Why This Matters
Malaysia represents one of Huobi’s largest markets. Losing Malaysian customers could significantly put the crypto exchange’s finances under pressure. Due to declining revenue, the exchange has been forced to take cost-cutting measures recently.
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