Malaysia Regulator Orders Crypto Exchange Huobi Global Limited To Stop Operations

Cryptocurrency exchange Huobi Global Limited has to stop operations in Malaysia after its regulator found it was operating without being registered. 

The Securities Commission Malaysia on Monday said the exchange has to disable its website and mobile apps on platforms including the Apple Store and Google Play, according to a press release. 

The regulator said it viewed the “breach seriously,” adding that not registering is a violation of its Capital Markets and Services Act of 2007.

“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests,” the regulator said. 

Huobi Global Limited’s CEO Leon Li specifically was ordered to make sure the exchange disables its site, stop circling advertisements among other directives. 

The regulator also warned investors when choosing platforms and said to be wary of “too good to be true” returns. 

“Those who invest with unlicensed or unregistered entities or individuals are exposed to risks such as fraud and may not be protected under Malaysian securities laws,” they said. 

Huobi Global Limited did not immediately respond to a request for comment.

Exchange crackdown in the US 

US Securities and Exchange Commission Chair Gary Gensler has called on exchanges to register and recently said that they tend to be “rife with conflicts.” 

San-Francisco based exchange Coinbase has argued that the SEC has not complied with the law by providing companies like it a way to register. 

Coinbase was served a Wells notice in March saying that the SEC is ready to recommend formal charges to its five-member commission. 

“We’ve repeatedly asked the SEC for its own views on how securities laws might apply to Coinbase and our industry. To be candid, we’ve mostly gotten silence in response,” said Coinbase’s Chief Legal Officer Paul Grewal in a video response to the SEC’s Wells Notice. 

Crypto exchange Bittrex US filed for bankruptcy earlier this month after the SEC said the platform was running an unregistered securities exchange.