Securities Commission Malaysia Cracks Down On Huobi
The Securities Commission Malaysia (SC) has initiated enforcement actions against Huobi Global Limited, a prominent digital asset exchange (DAX), and its Chief Executive Officer, Leon Li, for operating in Malaysia without proper registration. The SC has issued a public reprimand against Huobi Global Limited and Leon Li, highlighting their illegal operations within the country.
*Investors should exercise caution when choosing investment platforms and to always do their due diligence before making any investment decisions.
— SC Malaysia (@SecComMalaysia) May 22, 2023
Crackdown on Huobi Global
As part of the enforcement measures, the SC has ordered Huobi Global Limited to cease its operations in Malaysia immediately. This includes disabling its website and mobile application on various platforms such as Apple Store, Google Play, and other digital application platforms. Furthermore, the company has been directed to refrain from circulating any advertisements, whether through email or social media, targeting Malaysian investors. Leon Li, as the CEO, has been specifically instructed to ensure compliance with these directives.
The SC’s actions stem from concerns regarding Huobi Global Limited’s compliance with local regulatory requirements and the safeguarding of investors’ interests. Operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is considered an offense under Section 7(1) of the Capital Markets and Services Act 2007, and the SC views this breach as a serious matter.
Warning to Malaysian Investors
The SC strongly advises all Malaysian investors who have been using Huobi Global Limited to immediately halt trading activities on the platform, withdraw their investments, and close their accounts. Investors are urged to engage with RMOs that are registered with the SC, as these operators have undergone rigorous regulatory scrutiny and are bound by stringent guidelines to protect investors under Malaysia’s securities laws. Investing with unlicensed or unregistered entities exposes individuals to risks such as fraud and may leave them without protection under Malaysian securities laws.
To avoid falling victim to fraudulent schemes, investors should exercise caution when selecting investment platforms and conduct thorough due diligence before making any investment decisions. Additionally, investors should be wary of investment schemes that promise excessively high returns with little risk, as these often turn out to be too good to be true. By taking these precautions, investors can safeguard their investments and protect themselves from fraudulent activities.
