Malaysia's SC Instructs Huobi to Shutdown - In a recent development, Malaysia's Securities Commission (SC) has ordered the Singapore-based crypto exch
Malaysia’s SC Instructs Huobi to Shutdown – In a recent development, Malaysia’s Securities Commission (SC) has ordered the Singapore-based crypto exchange to seize its operations in the country.
The Securities Commission accused Huobi of operating an unregistered crypto exchange in Malaysia. It, therefore, ordered local users and investors to withdraw their funds and close their accounts.
The SC’s action against Huobi
The security watchdog took this action today, as reported by The Malaysian Reserve. Huobi has been ordered to shut down its website as well as its mobile application on platforms such as Apple Store and Google Play.
The exchange was also urged to stop any ongoing advertisements or publications to Malaysian investors either through email or other social media platforms. In the press release, the SC points to a section of the Capital Markets and Services Act 2007 which asserts that operating a digital asset exchange without proper registration is a serious violation.
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Furthermore, the Commission urged all local customers who have been trading on the Huobi platform to withdraw their assets and close their accounts. The SC also advised local users they might be exposed to “fraud” if they continue using the platform, and as such, local laws might not be able to protect them.
Recall that Huobi was forced to close its operations in China in 2021 which resulted in it moving abroad and relocating its headquarters to Singapore. Since that, Huobi has been struggling to regain its market dominance.
CEO Leon Li and his Huobi controlling stake
Last October, Huobi CEO Leon Li reportedly sold his controlling stake in Huobi Global to Hong Kong-based asset managers About Capital. According to Li, the deal will accelerate the business expansion initiatives as well as its plans for globalization.
Also, at the time of the deal, reports showed that the CEO would also leave the company, however, his official Linkedin profile still shows that he still occupies the position.