Huobi Charged by Malaysian SEC for Illegal Operations

Sahana Kiran
Source – Coindesk

As crypto companies strive to meet the growing global demand and expand their operations, they face increasing challenges imposed by regulators. Huobi Global, in particular, has encountered a series of difficulties over the past few years. In addition to being ousted from Thailand and experiencing differences in management, the exchange has now encountered another obstacle.

In a recent development, the Securities Commission Malaysia [SC] announced that it has filed charges against Huobi Global Limited and its CEO, Leon Li. The regulatory body has accused the entities of operating a digital asset exchange [DAX] without the necessary registration. Now, the watchdog wants the exchange to stop several activities.

According to the press release, the regulator directed Huobi to cease its operations within the country. This included disabling its website and mobile applications, including Apple Store, Google Play, and other digital applications. Advertisements were also urged to be taken down. The SC wrote,

“Huobi Global Limited has also been directed to cease circulating, publishing or sending any advertisements, whether in email or on social media platforms, to Malaysian investors. Leon Li, as the CEO, has also been specifically ordered to ensure that the above directives are carried out.”

The Way Forward

In light of the situation, the SC is actively advising Malaysian investors to refrain from trading through Huobi. The regulator is urging Huobi customers to withdraw their investments and close their accounts.

The future presence of Huobi in Malaysia remains uncertain. It would be necessary for the firm to obtain a license if it intends to operate in the region. As of now, neither Huobi nor Justin Sun, have provided any comments regarding the accusations made by the SC.

Huobi Token [HT] remains stable

The entire crypto market is under correction at the moment. The Huobi Token [HT], however, was making modest gains. At press time the asset was trading for a high of $2.94 with a 0.57% daily rise. It is often observed that lawsuits or increased government scrutiny can have a negative impact on the price of crypto assets. Such events can create uncertainty and erode investor confidence, leading to a decline in prices.