Huobi Global ordered to halt operations in Malaysia

The NFT Unicorn 1684752422_4595b142-8d07-4430-bc68-819b6d9b0a83 Huobi Global ordered to halt operations in Malaysia Crypto News

Huobi Global has been ordered to close down its operations in Malaysia following an enforcement action from the country’s Securities regulator.

According to an official statement from the Securities Commission Malaysia (SCM) on May 22, Huobi failed to register as a cryptocurrency exchange operator and will have to cease all activity. The company has also been directed to disable its website and mobile applications on Apple Store and Google Play.

The cryptocurrency exchange is also expected to cease advertising its products and services to Malaysian users over email and social media platforms.

The SCM noted that its decision was driven by concerns about Huobi’s ‘compliance with local regulatory requirements’. Having failed to obtain SCM registration, the regulator has also directed Malaysian investors to stop trading on the platform, withdraw funds and close accounts.

Huobi has been in the crosshairs of the Malaysian Securities regulator since August 2022, after the SCM issued an investor alert stating that the exchange was operating without the necessary permissions in the country.

Related: Malaysian comms official calls on the state to legalize crypto and NFTs

Following the public announcement, Huobi indicated that it was in discussions with Malaysian regulators over its operations in the region. The company had initially launched a brokerage firm called Huobi Labuan in Nov. 2020 that had a provisional nine month period to offer cryptocurrency spot and derivatives trading. 

Earlier in 2022, cryptocurrency exchange Binance managed to secure a foothold in the Malaysian market by acquiring a stake in regulated trading platfrom MX Global. Binance had found itself in a similar situation to Huobi midway through 2021, being ordered to cease operations in the region without the necessary regulatory approval.

According to the SCM website, just four companies are registered as recognized cryptocurrency exchange operators. This includes Luno Malaysia, MX Global, Sinegy and Tokenize Technology. The list was last updated in Aug. 2022.

Cointelegraph has reached out to Huobi Global for official comment on the enforcement action.

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