Malaysia’s Securities Commission Orders Cryptocurrency Exchange Huobi to Cease Operations
The Securities Commission of Malaysia has ordered Huobi to stop operations in the country. Huobi Global has been operating in Malaysia without registration meaning that it was not centralized in the region.
To this end, SC has taken action against Huobi exchange as a crypto entity and CEO Leon Li for trading cryptocurrencies in the region without registration.
The regulator has also issued a public statement on the matter as the week starts. SC officials have maintained that there are compliance issues concerning Huobi Global.
Therefore, the financial regulator has decided to seize the operations of the enterprise citing compliance with regional laws and protecting the interest of the Malaysian investors.
The financial regulator has also claimed that Huobi has violated section 7(1) of the Capital Markets and Services Act of 2007.
SC has directed Huobi to disable its website and application in the region. At the same time, the firm is barred from marketing its services to Malaysian investors as well. Regulators have ordered Leon Li the CEO of Huobi to make sure that these orders are implemented.
On the other hand, the SC has also directed Huobi account holders in Malaysia to withdraw their crypto holdings and close their accounts.
To this end, Justin Sun who is the founder and CEO of Tron Blockchain has told the media that Huobi is not operational in Malaysia. He also said that Leon is not the current CEO of Huobi as the title does not exist in the firm as an executive role.
He has also explained that the instructions of SC are related to the previous Huobi corporate structure. Meanwhile, the new Huobi exchange has become compliant with international regulatory requirements.
Talking about the enforcement, he maintained that the crypto exchange is working on ensuring a safe, secure, and compliant trading platform for its users across the globe. In the last quarter of 2022, Huobi declared that M and A fund of Capital Management have bought the majority stake in Huobi.
The investment enterprise hails from Hong Kong. However, at present Huobi has not revealed its biggest shareholder’s identity. There are speculations in the market that Leon has put up his 60% stake for sale and looking for a new buyer.
Justin Sun Plans to Increase Huobi Traction by Listing More Meme Coins
Journalists have inquired Sun about purchasing a $1 billion stake in Huobi exchange from Leon. However, he has continued to deny any such development. Meanwhile, he has continued to act as advisor for the exchange with plans to list more meme coins on the network.
To this end, he has also alleged that the younger brother of Leon Li Wei has received millions of HT tokens native to the Huobi exchange and printed $7.45 million in profits.
Sun has plans to recall all token awards from Wei and send them to the burn address claiming that he has not played any role in the development of the cryptocurrency exchange. Huobi exchange has been offering services in various countries across the globe and is currently 4th largest crypto exchange based on trading volume.
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