SC orders Huobi Global to cease digital asset exchange operations

THE Securities Commission (SC) has taken action against Huobi Global Ltd and its CEO Leon Li for operating a digital asset exchange (DAX) in Malaysia without registration.

In a public reprimand, SC has ordered Huobi to stop its operations in the country, including disabling its website and mobile application on several platforms such as Apple Store, Google Play and any other digital application platforms.

Huobi has also been directed to cease circulating, publishing or sending any advertisements, whether in email or on social media platforms, to Malaysian investors.

“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests,” the regulator said in a statement today.

SC said it views the breach seriously, as operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offence under Section 7(1) of the Capital Markets and Services Act 2007.

The SC urged Malaysian investors who have been using Huobi to immediately cease trading through its platform, withdraw all their investments, and close their accounts. – TMR