Huobi Global Limited ordered to Stop Operations

Huobi Global Limited ordered to Stop Operations


Good day everyone,

I hope you are all well, welcome to CryptoGod-1’s blog on all things Crypto. Today I will be looking at the recent news where Huobi Global Limited has been ordered to stop all operations in Malaysia due to working without the necessary registration.

 

Huobi Global Limited

Huobi Global Limited is a cryptocurrency exchange founded in China in 2013 by Leon Li. It has offices in Hong Kong, South Korea, Japan and the United States, and in 2018 became publicly listed in Hong Kong. It is known for offering cryptocurrency trading, staking, and buying / selling. As of 2018, Huboi is known to have processed over $1 billion in daily trades.

 

 

Malaysian Regulator

The Securities Commission Malaysia (SCM) announced on Monday the 22nd of May, 2023, that Huboi is being forced to disable its website and mobile apps on platforms including the Apple Store and Google Play within the nation. This comes after the regulator found the company was operating without being registered. It is viewed as a serious breach and that by not registering, Huboi is in breach of the Capital Markets and Services Act of 2007. The regulator noted:

 

“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests."

The CEO of Huobi Global Limited, Leon Li, was specifically ordered to ensure the exchange follows these demands along with putting an end to any advertisements among other directives. Investors have also been warned that when they choose a platform, it is important to understand when things are just “too good to be true” in terms of returns. They stated that:

 

“Those who invest with unlicensed or unregistered entities or individuals are exposed to risks such as fraud and may not be protected under Malaysian securities laws.”

 

SCM noted that their decision was driven by concerns about Huobi’s “compliance with local regulatory requirements.“ They have also advised all investors to cease trading on the platform, while instructing them that withdrawing their investments and closing their accounts would be the best course of action.

Since August 2022 the SCM has been warning investors regarding the exchange, noting that they alerted investors by stating the exchange had been operating with the necessary permissions in the country. Following that announcement, Huboi claimed they were in discussions with Malaysian regulators about their regional operations. 

Binance have periously had similar issues in Malaysia, when they managed to secure a foothold in the Malaysian market by gaining a stake in the regulated trading platform MX Global. In mid 2021 they were ordered to cease operations by the SCM for not having the necessary regulatory approval.

Currently the SCM claim there are only four registered and recognized companies allowed to conduct ryptocurrency exchange operators in the nation. These include Luno Malaysia, MX Global, Sinegy and Tokenize Technology. The list was last updated in August 2022.

 

 

Have a great day.

Peace. CryptoGod-1.

 

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cryptogod-1
cryptogod-1

Writer, designer, creator, and life enthusiast. I love to read and write and enjoy sharing my passion for crypto, sports, literature and everything and anything I can enjoy in life.


CryptoGod-1 : Crypto & Blockchain
CryptoGod-1 : Crypto & Blockchain

Enthusiast here looking to share my ideas, thoughts, analysis, and experience when it comes to all things crypto

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