The Securities Commission Malaysia (SC) has ordered cryptocurrency exchange Huobi Global to cease operating in the Southeast Asia country, noting that the platform possesses no requisite authorization or registration. The securities regulator also asked the exchange to disable its website and mobile application on various platforms such as Apple and Google Play Stores.

SC announced the enforcement action on Tuesday, noting that it also ordered Huobi to stop circulating or publishing any advertisements targeted at Malaysian investors, whether through email or social media platforms. The watchdog said it was concerned about the Seychelles-based crypto exchange's compliance with local regulatory requirements and the protection of investors' interests.

According to SC, Huobi's lack of registration as a Recognized Market Operator (RMO) violates the country's capital markets law. As a result, the financial markets supervisor ordered Leon Li, Huobi's CEO, to ensure compliance with the directives.

SC Warns Malaysian Investors

In the announcement, SC also warned Malaysian investors who patronizes Huobi to immediately halt trading on the crypto exchange's platform. It further advised them to withdraw their investments from the platform and shut down their accounts.

Additionally, the regulator urged investors to engage with only RMOs which it said have undergone "strict regulatory scrutiny" and are required to adhere to strict guidelines to protect investors under the country's securities laws.

"Those who invest with unlicensed or unregistered entities or individuals are exposed to risks such as fraud and may not be protected under Malaysian securities laws," SC said in the statement.