Huobi Global Ltd, a digital asset exchange (DAX), has been ordered by the Securities Commission Malaysia (SC) to suspend its operations in Malaysia due to operating without the necessary license.
The SC has instructed Huobi to remove its website and mobile apps from major digital platforms, including the Apple Store and Google Play. The commission has publicly reprimanded Huobi and its executive, Leon Li, for conducting unlawful operations in Malaysia.
This action by the Supreme Court comes in response to concerns over Huobi’s compliance with local regulatory requirements and the need to protect investors’ interests. Operating a DAX without obtaining registration as a Recognised Market Operator (RMO) is a violation of Section 7(1) of the Capital Markets and Services Act 2007.
The SC urges Malaysian investors who have been using Huobi to cease trading through the platform, withdraw their investments, and close their accounts immediately. Huobi is also prohibited from disseminating advertisements to Malaysian investors through email or social media platforms.
Leon Li, as the CEO of Huobi, has been specifically directed to ensure compliance with these orders.
Investors are advised to only engage with RMOs that are registered with the SC, as these entities have undergone strict regulatory inspections and are bound by stringent rules to protect investors under Malaysia’s securities laws.
The Supreme Court cautions investors to exercise caution when selecting investment platforms and to conduct thorough research before making any investment decisions. Investing with unlicensed or unregistered entities or individuals exposes investors to risks such as fraud and may leave them unprotected by Malaysian securities laws.
Additionally, investors should be wary of investment plans that promise high returns with low risk, as they often prove too good to be true. By following these safeguards, investors can protect their interests and avoid falling victim to fraudulent schemes.