In a recent development, the Securities Commission Malaysia (SC) has announced that it has taken action against Huobi Global Limited, a prominent digital asset exchange (DAX) operator, for operating in Malaysia without proper registration. This move by the SC aims to enforce regulatory compliance and protect the interests of Malaysian investors, according to the press release.
Public Reprimand Issued Against Huobi Global Limited & CEO
The SC’s action includes issuing a public reprimand against Huobi Global Limited and its Chief Executive Officer, Leon Li, for their illegal operations in the country.
Huobi Global Limited has been directed to cease its operations in Malaysia immediately as part of the enforcement measures. Furthermore, the SC has mandated disabling Huobi’s website and mobile application on various platforms, including Apple Store, Google Play, and other digital application platforms.
The regulatory body has also instructed Huobi Global Limited to halt the circulation, publication, or dissemination of any advertisements targeted toward Malaysian investors via email or social media platforms. As the CEO, Leon Li has been specifically instructed to ensure compliance with these directives.
The SC’s decision to take action against Huobi Global Limited comes in response to concerns regarding the platform’s adherence to local regulatory requirements and the safeguarding of investors’ interests.
Operating a digital asset exchange without obtaining the SC’s registration as a Recognised Market Operator (RMO) is considered a serious offense under Section 7(1) of the Capital Markets and Services Act 2007.
In light of these developments, the SC has urged all Malaysian investors utilizing Huobi Global Limited’s platform to immediately cease trading, withdraw their investments, and close their accounts.
Investors are strongly advised to choose registered RMOs endorsed by the SC, as these entities undergo rigorous regulatory scrutiny and adhere to strict guidelines that protect investors under Malaysia’s securities laws.
The SC has emphasized the importance of conducting thorough due diligence before making any investment decisions. Investors are further advised to exercise caution when selecting investment platforms and be wary of schemes that promise high returns with minimal risk, as these may indicate fraudulent activities.
Per the press release, by taking these precautions, investors can safeguard their investments and avoid falling victim to potential scams.
The SC’s action against Huobi Global Limited serves as a stern reminder to all market participants that regulatory compliance is essential for the smooth functioning of the digital asset exchange ecosystem.
However, the SC remains committed to ensuring a safe and secure investment environment for Malaysian investors, focusing on promoting transparency and investor protection in the ever-evolving digital asset landscape.
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