Huobi was told to shut down by Malaysian authorities

The Malaysian Securities Commission has urged Huobi customers to immediately remove any funds they may have on the site.

Huobi, a popular cryptocurrency exchange, has been told to cease operations in Malaysia by the country’s Securities Commission (SC). Huobi’s CEO, Leon Li, received a public rebuke from the authority.

In a news release dated May 22, the SC of Malaysia said that Huobi’s activities in the nation were unlawful since the company had not registered as a DAX.

Exchanges in Malaysia are required by law to be licenced by the Securities Commission (SC) as a Recognised Market Operator (RMO), and the authorities have identified this as a serious violation of the Capital Markets and Services Act 2007.

As a result, the exchange is no longer allowed to have a live website or mobile app in major app stores like the Apple App Store or the Google Play Store.

The Malaysian financial authority has urged investors to delete their accounts and remove any funds from the site. The SC warns that further use of the exchange puts users at risk of “fraud,” which may not be covered by applicable local legislation. And CEO Leon Li is responsible for making sure such orders are carried out.

Huobi is working to restore its foothold in the market at the time of the new order. After being compelled to shut down its Chinese operations in 2021, the exchange had lost a significant portion of its market supremacy to competitors during the previous years.

Meanwhile, Huobi CEO and founder Leon Li sold the company’s majority interest to asset managers About Capital of Hong Kong in October of last year.

Li said the transaction will help the firm go on with its globalisation and growth objectives. There were rumours at the time that Li would be leaving the firm permanently. According to his LinkedIn profile, he still serves as CEO.

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