In an unexpected turn of events, Huobi Global, a prominent cryptocurrency exchange, finds itself under the gaze of Malaysia’s Securities Commission (SC). The commission has mandated the exchange to terminate operations in the nation due to allegations of operating without a proper license.
Both Huobi Global and its CEO, Leon Li, are facing the heat for purportedly running an unauthorized crypto exchange in Malaysia. The SC’s stringent action comes amid rising apprehension about Huobi’s regulatory compliance and its implications on investor security.
“The move to halt Huobi’s operations stems from an effort to enforce the local regulatory framework and safeguard investor interests,” clarified the SC in a recent announcement. They further emphasized that running a digital asset exchange without proper registration contravenes Section 7(1) of the Capital Markets and Services Act 2007.
The commission’s directives are clear – Huobi must suspend its website and mobile applications in Malaysia and halt advertising efforts targeting Malaysian investors. Leon Li, as the CEO, bears the responsibility of ensuring these directives are carried out in full. The SC is also advising Huobi’s Malaysian customers to withdraw their investments and close their accounts.
Adding a new twist to the story, Justin Sun, the founder of Tron and an advisor to Huobi, contends that Huobi is not currently operating in Malaysia. Furthermore, Sun dismissed the claim that Leon Li is the CEO of Huobi, maintaining that the company currently does not have a CEO.
Sun responded to the enforcement action, stating, “We want to clarify that the recent reports pertain to the former Huobi entity and past shareholders. This situation is unrelated to the current Huobi platform, which abides by rigorous global regulatory compliance.”
Despite this controversy, Huobi remains the fourth-largest crypto exchange globally, boasting substantial trading volumes. However, the unfolding regulatory scrutiny in Malaysia could alter the crypto landscape significantly.
This report is based on an article from theblock.co.