Malaysia Securities Commission Orders Huobi To Cease Illegal Digital Asset Exchange Operations

The Malaysian Securities Commission (SC), the self-funded statutory body that regulates and develops the country's capital market, has ordered Beijing-based cryptocurrency trading platform Huobi Global to cease its operation in the region, alleging it was illegally doing business by operating an unregistered digital asset exchange.

According to the announcement, which came in the form of a press release Monday, the Malaysian financial watchdog also issued a public reprimand against Huobi Global Limited, and its CEO Leon Li for operating illegally in the country.

Li was charged with the same accusations and was ordered to ensure the financial regulator's directives would be strictly observed by his crypto business.

The SC ordered Huobi to stop its operation in the Southeast Asian country, disable its website and mobile app and stop the circulation, publication, or mailing of advertisements to Malaysian investors via various channels.

"In addition, the SC has ordered Huobi Global Limited to stop its operations in the country, including to disable its website and mobile application on several platforms such as Apple Store, Google Play and any other digital application platform," the press release read.

"Huobi Global Limited has also been directed to cease circulating, publishing or sending any advertisements, whether in email or on social media platforms, to Malaysian investors," the financial watchdog added.

Operating an unregistered digital asset exchange platform in Malaysia is a violation of the country's Capital Markets and Services Act of 2007, and is considered a serious offense in the country.

Furthermore, the statutory body also advised Malaysian investors to "invest and deal with RMOs that are registered with the SC" noting the "registered RMOs have undergone strict regulatory scrutiny and are required to adhere to strict guidelines so that investors are protected under Malaysia's securities laws."

The financial watchdog warned of the risks involved when investors invest in unlicensed or unregistered entities, and noted they could be victims of fraud, which will not be protected by the securities law of the country.

Moreover, the SC advised, "Investors should exercise caution when choosing investment platforms and to always do their due diligence before making any investment decisions."

Last August, the Malaysian SC added Huobi to its investor alert list and revealed the crypto company was "operating a digital asset exchange (DAX) in Malaysia without being registered with the SC."

Huobi Global is yet to respond to International Business Times' request for comment on the latest announcement by the Malaysian SC.