Cryptocurrency exchange Huobi has been ordered to cease operations in Malaysia by the Asian country’s Securities Commission (SC). Regulators have publicly disciplined Huobi CEO Leon Li.
Malaysian SC said in a May 22 press statement that Huobi is operating illegally in the country because it failed to register as a digital asset exchange (DAX).
The authorities said this was a serious violation of the Capital Markets and Services Act 2007 and called on the exchange to obtain a license as a Recognized Market Operator (RMO) from Malaysia’s SC.
For this reason, the exchange was instructed to disable its website and mobile applications on several platforms such as Apple Store, Google Play.
“Huobi Global Limited has also been instructed to stop circulating, publishing or sending any advertisements to Malaysian investors, whether by email or on social media platforms.”
Financial regulators have advised Malaysia-based investors to withdraw all assets from the platform and close accounts immediately. According to the SC, their continued use of the exchange could expose them to “fraud” and local laws may not protect them.it was Added CEO Leon Li is to ensure that the instructions are carried out.
New orders come as Huobi tries to regain its foothold in the market. The exchange has lost much of its market control to competitors over the past few years. close It will start operations in China in 2021.
Lee sold control
Meanwhile, Huobi founder and CEO Leon Lee has sold a controlling stake in the cryptocurrency exchange to a Hong Kong-based asset manager. October of last year.
Lee said the partnership will help the company accelerate its globalization plans, including its expansion efforts.
According to reports at the time, Lee Completely leaving the company. However, according to him LinkedInHe will continue to serve as CEO.
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