Malaysian Securities Commission takes action against Huobi Global
Malaysian Securities Commission (SC) announcedthat took action against cryptocurrency exchange Huobi Global Limited and its CEO Leon Li for illegal digital asset exchange activities in the country. SC publicly censured Huobi Global Limited and Leon Li for violating capital market laws.
SC also required Huobi Global Limited to cease its operations in Malaysia, including disabling its website and mobile application on various platforms such as the Apple Store, Google Play and any other digital application platforms. Huobi Global Limited is obligated to stop distributing, publishing or sending any advertising, whether by email or on social media platforms, to Malaysian investors. Leon Lee, as CEO, was instructed to ensure that these requirements were met.
This decision was made after concerns arose regarding the platform’s compliance with local regulatory requirements and protecting the interests of investors. SC considers this to be a serious breach, as it is an offense under section 7(1) of the Capital Markets Act 2007 to operate a digital asset exchange business without obtaining SC’s registration as a “recognized market operator”.
SC urges Malaysian investors who have used the Huobi Global Limited exchange to immediately stop trading through its platform, withdraw all their investments and close their accounts. Investors are strongly advised to invest and cooperate only with recognized market operators registered in SC. Registered Market Operators have undergone rigorous regulatory scrutiny and adhere to strict guidelines, ensuring that investors are protected under Malaysian securities laws. Those who invest through illegal or unregistered persons are exposed to risks such as fraud and may not be protected by Malaysian securities laws.
SC recommends that investors exercise caution when choosing investment platforms and always conduct due diligence before making any investment decisions. In addition, investors should be wary of investment schemes that promise high returns with low risk, as they may be too good to be true. By taking these precautions, investors can protect their investments and avoid becoming victims of fraudulent schemes.
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