Malaysian Securities Commission (SC) announced on enforcement action against Huobi for operating a digital asset exchange without registration.
The measures apply to Huobi Global Limited and co-founder Leon Li. SC ordered the platform to cease operations in the country, “including disabling the website and mobile app.”
“This decision was made following concerns about the platform’s compliance with local regulatory requirements and protecting the interests of investors,” the notice reads.
According to the Commission, operating a digital asset exchange without registration violates the provisions of section 7(1) of the Capital Markets and Services Act. The regulator urged investors to be careful when choosing investment platforms and schemes that promise high returns.
Cryplogger sent a request to Huobi, but they declined to comment.
At the same time, Tron founder Justin Sun, who is on the advisory board of the exchange, in a conversation with The Block clarified that “the described situation refers to the previous organization and former shareholders.”
“This is not related to Huobi’s current platform, which adheres to strict regulatory compliance around the world. We are committed to providing a safe, secure and compliant trading environment for our users around the world,” said Sun.
In the fall of 2022, the platform agreed to sell a majority stake in Hong Kong-based investment firm About Capital Management and announced a rebranding that dropped the official name Huobi Global.
Sun was the ultimate beneficiary of the purchase, according to media reports. The entrepreneur refuted these statements, explaining that he became a member of the advisory board of the exchange. Along the way, he admitted to being a major holder of HT tokens.
Recall that in August 2022, SC added Huobi to the “Investor Warning List.”
Previously, the company received a work permit in New Zealand and temporary approval from the Dubai regulator, as well as a license to provide financial services in Canada.
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Malaysian Securities Commission (SC) announced on enforcement action against Huobi for operating a digital asset exchange without registration.
The measures apply to Huobi Global Limited and co-founder Leon Li. SC ordered the platform to cease operations in the country, “including disabling the website and mobile app.”
“This decision was made following concerns about the platform’s compliance with local regulatory requirements and protecting the interests of investors,” the notice reads.
According to the Commission, operating a digital asset exchange without registration violates the provisions of section 7(1) of the Capital Markets and Services Act. The regulator urged investors to be careful when choosing investment platforms and schemes that promise high returns.
Cryplogger sent a request to Huobi, but they declined to comment.
At the same time, Tron founder Justin Sun, who is on the advisory board of the exchange, in a conversation with The Block clarified that “the described situation refers to the previous organization and former shareholders.”
“This is not related to Huobi’s current platform, which adheres to strict regulatory compliance around the world. We are committed to providing a safe, secure and compliant trading environment for our users around the world,” said Sun.
In the fall of 2022, the platform agreed to sell a majority stake in Hong Kong-based investment firm About Capital Management and announced a rebranding that dropped the official name Huobi Global.
Sun was the ultimate beneficiary of the purchase, according to media reports. The entrepreneur refuted these statements, explaining that he became a member of the advisory board of the exchange. Along the way, he admitted to being a major holder of HT tokens.
Recall that in August 2022, SC added Huobi to the “Investor Warning List.”
Previously, the company received a work permit in New Zealand and temporary approval from the Dubai regulator, as well as a license to provide financial services in Canada.
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