Huobi exchange, a cryptocurrency exchange founded in China and based in Seychelles, has faced regulatory action by the Securities Commission (SC) in Malaysia. In response, the Malaysian regulatory authorities have issued an order for Huobi exchange to halt its operations within the country immediately.
In a decisive move, the Securities Commission in Malaysia has taken control of Huobi’s website and phone apps, effectively putting a halt to the operation of the exchange’s online platforms.
The Securities Commission states that Huobi has been engaging in digital asset operations within Malaysia and has yet to obtain the necessary registration from local authorities.
As part of their measures against the Seychelles-based exchange, the regulatory body has prohibited Huobi from publishing or sending advertisements to Malaysian investors. This restriction ensures that the company cannot promote its services or reach out to potential investors in Malaysia through advertising channels.
In an advisory to investors in Malaysia, the financial regulator has strongly recommended that they swiftly withdraw all their assets from the Huobi platform and close their accounts. The Securities Commission expressed significant concerns over the potential exposure of investors to fraudulent activities, highlighting that local laws may not offer sufficient protection in such cases.
Furthermore, the SC emphasized the crucial role of CEO Leon Li in ensuring the diligent implementation of the regulatory directives. This proactive measure is aimed at safeguarding the interests and security of investors in Malaysia who participate in the cryptocurrency market.
The advisory serves as a clear indication of the SC’s commitment to protecting investors and maintaining the integrity of the financial ecosystem. By advising investors to withdraw their assets and close their accounts promptly, the regulatory body aims to mitigate potential risks and raise awareness about the need for caution when engaging with cryptocurrency exchanges.