The Malaysian Securities Commission has sanctioned Huobi Global and its CEO Leon Li, alleging that they are operating illegally in the country.
The Securities Commission of Malaysia (SC) has ordered Huobi Global Limited to terminate its activities in the country as it operates the crypto exchange without registration. However, SC filed a lawsuit against both Huobi and CEO Leon Li for operating illegally in the country. “This decision comes after concerns about the platform’s compliance with local regulatory requirements and the protection of investors’ interests,” the regulator said in a statement on May 22.
Regulator Invites Investors To Withdraw Their Assets
The Securities Commission of Malaysia has determined that operating a digital asset exchange without being registered is an offense under section 7(1) of the Capital Markets and Services Act 2007.
Malaysia said Huobi should disable its website and mobile app in the country, as well as stop all forms of advertising to Malaysian investors. The regulator stated that Leon Li was also specifically instructed to ensure that these directives are met.
SC has invited Malaysian users of Huobi to withdraw all investments from the platform and close their accounts.
In addition, SC has ordered Huobi to cease operations, including deactivating its website and mobile application on various platforms such as the Apple Store, Google Play and other digital application platforms.
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