PETALING JAYA: The Securities Commission Malaysia (SC) has ordered Huobi Global Ltd to cease its operations in the country for running an unauthorised digital asset exchange (DAX) in Malaysia.
According to SC’s statement today, Huobi has been instructed to disable its website and mobile applications on Apple Store, Google Play and other digital platforms.
“Huobi has also been directed to cease circulating, publishing or sending any advertisements – whether via emails or social media platforms – to Malaysian investors,” it said.
Apart from that, SC has specifically charged the Huobi CEO with ensuring that the directives are carried out as instructed.
The SC’s decision was made following rising concerns regarding the platform’s compliance with local regulatory requirements and protection of investors’ interests.
“SC views this breach seriously, as operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offence under Section 7(1) of the Capital Markets and Services Act 2007.
“The SC urges Malaysian investors who have been using Huobi to immediately cease trading through its platform, withdraw all their investments, and close their accounts,” it said.
The regulatory agency advises investors to conduct trading only with licenced RMOs as they have undergone strict regulatory scrutiny and must adhere to stringent guidelines and securities laws.
“Those who invest with unlicensed or unregistered entities or individuals are exposed to risks such as fraud and may not be protected under the Malaysian securities laws,” said SC.
It further warned investors to be careful when selecting investment platforms and always perform their due diligence in making investment decisions.
“Additionally, investors should be wary of investment schemes that promise high returns with little risk, as they may be too good to be true.
“By taking these precautions, investors can safeguard their investments and avoid falling victim to fraudulent schemes,” added the SC.