Malaysian regulator says Huobi lacks authorization to operate in the country

The Malaysian Securities Commission (SC) announced enforcement action against Huobi for operating a digital asset exchange without registration.

The measures apply to Huobi Global Limited and the company’s co-founder Leon Li.

The SC ordered the platform to cease operations in the country, including taking down the website and mobile app.

“This decision was taken after concerns about the platform’s compliance with local regulatory requirements and the protection of investors’ interests,” the notice said.

According to the Commission, operating a digital asset exchange without registration breaches Section 7(1) of the Capital Markets and Services Act. The regulator urged investors to exercise caution when choosing investment platforms and schemes promising high returns.

ForkLog has contacted Huobi representatives, but they declined to comment.

Tron founder Justin Sun, sitting on the exchange’s advisory board, in a discussion with The Block clarified that “the described situation relates to the previous organisation and former shareholders.”

“This is not connected with the current Huobi platform, which adheres to strict regulatory requirements worldwide. We strive to provide a safe, reliable and compliant trading environment for our users around the world,” Sun emphasised.

In the autumn of 2022 the platform agreed to the sale of a controlling stake in the Hong Kong-based investment company About Capital Management and announced a rebranding, as a result of which it abandoned the official name Huobi Global.

According to media reports, Sun was the ultimate beneficiary of the purchase. The entrepreneur denied these claims, explaining that he became a member of the exchange’s advisory council. He also admitted that he is a major holder of HT tokens.

As a reminder, in August 2022 the SC placed Huobi on the investors’ warning list.

Earlier, the company obtained a licence to operate in New Zealand and a temporary approval from the Dubai regulator, as well as a licence to provide financial services in Canada.