The Malaysian Securities Commission has ordered Huobi to stop business operations in the country. According to the regulator, Huobi has not met the regulatory requirements to provide virtual assets services in the country. In an official statement released today, the regulator stressed that the crypto exchange failed to register duly before commencing its business operations in Malaysia.
Additionally, in the statement, the SC ordered that Huobi should disable the usage of its mobile application and website in the country. Likewise, the regulator added that the exchange should cease advertising its services to citizens of the country. According to findings, it is a punishable offense under the Capital Markets and Services Act in Malaysia to run a virtual assets exchange without approval from the SC.
Consequently, the regulator mandated that Huobi shut down the accounts of Malaysian users on its platform. The SC added that any Malaysian user that opts to continue using the exchange is vulnerable to fraud. The regulator stated emphatically that existing local laws may not cover such users in seeking redress. Meanwhile, the regulator went on to demand that the CEO of the exchange, Leon Li must ensure compliance with the directive.
How the order could affect Huobi
However, the development is likely to slow down Huobi’s efforts towards expansion. Huobi like most crypto exchanges has focused on expanding its services to various regions. In recent times, the crypto exchange made moves to extend its services into regions like Hong Kong and the British Virgin Islands. Leaving the Malaysian market is likely to push Huobi down the pecking order of top crypto exchanges. According to data provided by Coinmarketcap, the crypto exchange is ranked 13th on the list of top crypto exchanges in terms of trading volume.
Meanwhile, indications from the official website of the SC revealed that only four exchanges registered duly with the regulator. The certified crypto exchanges are Tokenize Technology, Luno Malaysia, MX Global, and Sinergy. Around 2021, Binance suffered a similar fate to Huobi after the regulator forced it out of the region over registration issues. However, Binance had its way back into the region by acquiring a stake in MX Global.