On November 3, 2021, the Securities Commission Malaysia (SC) ordered Huobi to halt all operations in the country. The decision was made after the SC found that Huobi had failed to comply with local regulations.
Huobi is a cryptocurrency exchange that was founded in China in 2013. It has since expanded to become one of the largest exchanges in the world, with a presence in over 130 countries. In Malaysia, Huobi has been operating since 2019.
The SC’s decision to order Huobi to halt operations in Malaysia is a significant blow to the exchange. Malaysia is a growing market for cryptocurrency, and Huobi has been one of the leading players in the country. The decision will also have wider implications for the cryptocurrency industry in Malaysia, as it sends a message that regulators are taking a tough stance on non-compliance.
The SC’s decision was based on several factors. Firstly, the SC found that Huobi had failed to comply with local regulations regarding anti-money laundering (AML) and counter-terrorism financing (CTF). These regulations are designed to prevent the use of cryptocurrency for illegal activities, such as money laundering and terrorism financing.
Secondly, the SC found that Huobi had failed to obtain the necessary licenses to operate in Malaysia. Under Malaysian law, cryptocurrency exchanges are required to obtain a license from the SC before they can operate in the country. Huobi had not obtained this license, despite operating in Malaysia for over two years.
Finally, the SC found that Huobi had failed to comply with local regulations regarding investor protection. The SC found that Huobi had not provided adequate information to investors about the risks associated with investing in cryptocurrency.
In response to the SC’s decision, Huobi issued a statement saying that it was committed to complying with local regulations and that it would work with the SC to resolve the issues raised. However, it is unclear how long it will take for Huobi to resolve these issues and resume operations in Malaysia.
The SC’s decision to order Huobi to halt operations in Malaysia is part of a wider trend of regulators cracking down on cryptocurrency exchanges. In recent years, regulators around the world have become increasingly concerned about the risks associated with cryptocurrency, such as money laundering, terrorism financing, and investor protection.
In conclusion, the SC’s decision to order Huobi to halt operations in Malaysia is a significant development in the cryptocurrency industry. It sends a message that regulators are taking a tough stance on non-compliance and that cryptocurrency exchanges must comply with local regulations if they want to operate in a particular country. It remains to be seen how long it will take for Huobi to resolve the issues raised by the SC and resume operations in Malaysia.
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- Source: https://zephyrnet.com/huobi-ordered-to-cease-operations-by-malaysian-regulators/