KUALA LUMPUR: The Securities Commission Malaysia (SC) has taken action against Huobi Global Ltd (Huobi) and its chief executive officer (CEO), Leon Li for operating an unregistered digital asset exchange (DAX) in Malaysia.
In a statement today, the SC said it has ordered Huobi to stop its operations in the country and disable its website and mobile application on several platforms such as Apple Store, Google Play and other digital application 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, adding that as the CEO, Li has been charged with ensuring that the directives are carried out.
The decision was made following rising concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests.
"The 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.
Investors are strongly advised to invest and deal with RMOs registered with the SC, as registered RMOs have undergone strict regulatory scrutiny and must adhere to strict guidelines to protect investors under Malaysia’s 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 added that investors should exercise caution when choosing investment platforms and always do their due diligence before 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 SC. - Bernama
