Cryptocurrency exchange Huobi has been ordered by the Securities Commission (SC) to cease operating in Malaysia. The regulator issued a public reprimand to Huobi CEO Leon Li. Here are the details…
Reaction from Malaysia to crypto exchange Huobi
In a press release on May 22, Malaysia SC said that Huobi is operating illegally in the country because it has not registered as a crypto-asset exchange (DAX). Authorities stated that this was a serious violation of the Capital Markets and Services Act of 2007, which requires exchanges to be licensed as a Recognized Market Operator (RMO) from Malaysia SC. For this reason, the exchange has been directed to disable its website and mobile app on various platforms such as the Apple Store, Google Play, and others. The statement also included the following statements:
Huobi Global Limited has also been directed to stop advertising, posting or sending to Malaysian investors, whether via email or social media platforms.
The financial regulator advised Malaysian-based investors to withdraw all their assets from the platform and close their accounts immediately. According to SC, continued use of the exchange could expose them to “fraud”. Therefore, local laws may not protect them. It was added that CEO Leon Li needs to make sure the directives are followed.
Li sold his majority stake
The new order comes at a time when Huobi is trying to regain its position in the market. The exchange had to close its Chinese operations in 2021. Because cryptocoin.com As we have also reported, it lost most of its market dominance to its competitors in the past years. Meanwhile, Huobi founder and CEO Leon Li sold his controlling stake in the crypto exchange to Hong Kong-based asset managers About Capital last October. Li said the deal will enable the company to accelerate its globalization plans, including business expansion initiatives. At the time, reports indicated that Li would leave the company entirely. But he continues to hold the CEO position, according to his LinkedIn account.
Investors are advised to be careful when choosing investment platforms, and always do a thorough due diligence before making any investment decision. They should also be wary of investment plans that promise extremely high returns with minimal risk. Because such promises often turn out to be fraudulent. By taking these precautions, investors can protect their investments and avoid falling victim to fraudulent schemes. The recent sanctions action against Huobi Global Limited marks SC’s effort to maintain a fair and transparent investment environment in Malaysia. Time will tell what will happen to Huobi in the coming period.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.