The Securities Commission Malaysia (SC) has ordered Huobi Global Ltd to suspend operations in Malaysia for operating an unlicensed digital asset exchange (DAX).
According to a statement issued by SC today, Huobi has been directed to remove its website and mobile apps from the Apple Store, Google Play, and other digital platforms.
The SC said that it had given a public reprimand to Huobi and its executive, Leon Li, for operating unlawfully in Malaysia.
The Supreme Court issued its ruling in response to growing concerns about the platform‘s compliance with local regulatory requirements and the preservation of investors’ interests.
“SC views this breach seriously, as operating a DAX without obtaining the SCs registration as a Recognised Market Operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007. The SC urges Malaysian investors who have been using Huobi to immediately cease trading through its platform, withdraw all their investments, and close their accounts,” it stated.
Huobi has also been ordered to stop disseminating, publishing, or sending adverts to Malaysian investors, whether through email or social media platforms.
Li, as CEO, has also been particularly directed to guarantee that the aforementioned directions be followed.
Concerns regarding the platform‘s compliance with local regulatory standards and the protection of investors’ interests prompted this decision.
Investors should only invest in and engage with RMOs that are registered with the SC. Registered RMOs have undergone rigorous regulatory inspection and are obliged to follow tight rules in order to safeguard investors under Malaysias securities laws.
The Supreme Court advised investors to take care when selecting investing platforms and to always do due research before making any investment choices.
“Those who invest with unlicensed or unregistered entities or individuals are exposed to risks such as fraud and may not be protected under the Malaysian securities laws,” SC added.
Moreover, it said that investors should be skeptical of investment plans that promise large returns with low risk since they may be too good to be true. Investors may protect their interests and prevent falling victim to fraudulent schemes by adopting these safeguards.