Huobi Global has been ordered to shut down its operations in Malaysia following enforcement action by Malaysia's securities regulator.
According to an official statement from the Securities Commission of Malaysia (SCM) on May 22, Huobi Global failed to register as a cryptocurrency exchange operator and must cease all activities. The company has been directed to disable its website and mobile applications on the Apple Store and Google Play.
Cryptocurrency exchanges are also expected to stop promoting their products and services to Malaysian users via email and social media. SCM noted that its decision was motivated by concerns about Huobi's “compliance with local regulatory requirements.” The regulator also directed Ma laysian investors to stop trading on The platform, withdraw funds and close accounts after failing to obtain SCM registration.
Huobi Global is rebranding in November 2022 after being acquired by About Capital Buyout Fund last month. Following news of SCM's enforcement action, a company spokesperson told Cointelegraph that the order has nothing to do with Huobi, which continues to operate after a change of ownership last year: “In response to recent reports, we would like to clarify that the circumstances outlined relate to previous Huobi entities and former shareholders. This has nothing to do with the Huobi platform, which is currently in strict compliance with regulations around the world.” Huobi Global has been under the scrutiny of Malaysia's securities regulator since August 2022, after SCM issued an investor alert that the exchange was operating without the necessary licenses in the country.
Following the announcement, Huobi said it was discussing its regional operations with Malaysian regulators. The company initially launched a brokerage called Huobi Labuan in November 2020 with a nine-month interim period to offer cryptocurrency spot and derivatives trading . In 2022, cryptocurrency exchange Binance managed to gain a foothold in the Malaysian market by acquiring a stake in regulated trading platform MX Global. By mid-2021, Binance found itself in a similar situation to Huobi, having been ordered to cease operations in the region for failing to obtain the necessary regulatory approvals.
According to the SCM website, only four companies are registered as recognized cryptocurrency exchange operators. This includes Luno Malaysia, MX Global, Sinegy and Tokenize Technology. This list was last updated in August 2022.
