The Securities Commission Malaysia (SCM) has instructed Huobi Global, a cryptocurrency exchange, to suspend its operations in Malaysia. This decision was made due to Huobi Global’s failure to register as a cryptocurrency exchange operator, as required by local regulatory guidelines. The SCM’s enforcement action includes disabling Huobi Global’s website and mobile applications and ceasing the advertising of its products and services to Malaysian users. Malaysian investors have been advised to withdraw their funds and close their accounts on the platform.
Regulatory Scrutiny and Huobi Global’s Revamp
Following its acquisition by About Capital Buyout Fund in the previous month, Huobi Global underwent a rebranding in November 2022. However, the recent enforcement action by the SCM is not associated with the current Huobi platform, which operates in compliance with global regulatory standards. Instead, the order applies to the former Huobi entity and its previous shareholders. Regulatory scrutiny of Huobi Global began in August 2022 when the SCM issued an investor alert, raising concerns about the exchange operating without the necessary permissions in Malaysia. Huobi Global had engaged in discussions with Malaysian regulators to address compliance issues after the public announcement.
Comparison with Binance and Market Presence
Notably, another major cryptocurrency exchange, Binance, faced a similar situation in mid-2021 when it was ordered to halt operations in Malaysia due to lacking regulatory approval. However, Binance managed to establish a presence in the Malaysian market by acquiring a stake in a regulated trading platform called MX Global in 2022. This highlights the significance of obtaining regulatory approval to operate within the country. However, the list was last updated in August 2022, and it is crucial for cryptocurrency exchanges to comply with regulatory requirements to ensure a legitimate and secure trading environment for investors.
The Securities Commission Malaysia’s decision to halt Huobi Global’s operations in Malaysia reflects the importance of regulatory compliance in the cryptocurrency industry. By failing to register as a cryptocurrency exchange operator, Huobi Global has faced enforcement action, requiring the suspension of its services in the country. This development follows similar regulatory challenges faced by other exchanges operating in Malaysia, emphasizing the need for cryptocurrency platforms to adhere to local regulatory guidelines. As the industry continues to evolve, regulatory compliance will remain a key factor in ensuring investor protection and the stability of the digital asset market.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments. This is a news article only.
