"Unfortunately for Huobi, it has been plagued by problems lately."
The Securities Commission (SC) took action against Huobi Global Limited and its Chief Executive Officer (CEO) Leon Li for operating the digital asset exchange (DAX) in Malaysia without registration.
Explained further, the SC not only ordered Huobi to stop its operations in Malaysia but also disabled the website including mobile applications on several platforms such as Apple Store, Google Play and so on.
In addition, Huobi was also instructed to stop the distribution, publication or transmission of any advertisement whether in email on social media platforms to Malaysian investors.
It is well known that the SC is very serious in this matter as operating the DAX without obtaining the SC's registration as a Recognized Market Operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007.
As such, the SC urged Malaysian investors using Huobi to immediately stop trading through its platform, withdraw all their investments and close their accounts.
This is because those who invest with unlicensed entities or individuals can be exposed to risks such as follow-up fraud and are not protected under Malaysian securities laws.
It can be explained here that investors are strongly advised to invest in or deal with companies that are registered with the SC after they have undergone regulatory scrutiny and adhere to strict guidelines.
While everyone should also carefully choose an investment platform because with these precautions, an individual can protect their investment and avoid becoming a victim of fraudulent schemes.
