Crypto companies in Malaysia are facing an increasing regulatory crackdown. Recently, the Securities Commission of Malaysia (SC) took tough action against Huobi Global, forcing it to immediately cease all operations in the country. According to the SC, Huobi allegedly violated the law by operating its crypto exchange platform without registering in accordance with legal requirements. As a result, action has also been taken against the company’s CEO Leon Li.
Huobi Global Limited to close its doors in Malaysia
The Securities Commission (SC) of Malaysia a published an official press release on Monday, May 22, 2023, revealing that Huobi Global was operating as a market operator without being registered with the competent authority.
Accordingly, the SC ordered Huobi Global to immediately suspend its operations in Malaysia, because the platform allegedly violated Section 7(1) of the Capital Markets and Services Act 2007.
The Malaysian regulator also required that all Malaysian users of Huobi Global stop doing business with the company, withdraw their funds and deactivate their Huobi accounts. In addition, Huobi was forced to disable its website and mobile applications in the country, while all advertising to Malaysian customers must cease.
As CEO, Leon Li is responsible for ensuring the implementation of regulatory obligations. However, in an interview with The Block, Justin Sun clarified that Huobi, his company, does not currently operate in Malaysia. He also pointed out that the CEO mentioned by the Securities Commission (SC) is not recognized, as the company currently has no CEO in place. Huobi started its operations in Malaysia in November 2020.
In response to recent reports, we would like to clarify that the situation described relates to the former Huobi entity and the former shareholders. This is not associated with the current Huobi platform, which adheres to strict regulatory compliance globally.Huobi’s response
Justin Sun also assured that his company is committed to providing a safe, secure and compliant business environment for all users worldwide.
Regulatory crackdowns in Malaysia are steadily increasing, creating an increasingly hostile environment for cryptocurrency businesses. These measures are similar to those put in place by the Securities and Exchange Commission (SEC) in the United States.
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