Huobi Has Been Added To The Securities Commission’s Investor Alert List In Malaysia

According to the Malaysian Securities Commission, Huobi is operating without legal registration from local regulators.

On Monday, Malaysia’s Securities Commission (SC) published a statement on Huobi’s operations in the country. The crypto exchange is now on the SC’s Investor Alert List, according to the statement.

According to Malaysian financial regulators, Huobi has been running a digital asset exchange in the nation without registering with the SC.

In a subsequent tweet, the SC stated that any operations that perform or offer capital market activities within the country must be approved by the SC. Those that do not receive such approval are classified as unlicensed or unregistered organizations. According to local authorities, investors are “seriously advised” not to invest in such activities.

Furthermore, the Supreme Court emphasized that anyone who uses such a service does so at their own risk and will be unable to lawfully settle monetary losses.

A statement like that does not auger well for the exchange. Local investors responded to the tweet by suggesting that changing exchanges is an easy solution.

The Huobi Group answered in an official statement saying compliance is a major component of its business model in every area where it operates:

“We are currently in discussions with Malaysian regulatory authorities regarding our presence in the local Malaysian market.” 

Huobi is expanding into new markets such as Australia and the United States. In early August, Australian officials approved the exchange. The exchange has obtained a FinCEN license in the United States, bringing it one step closer to providing services to American clients.

Huobi said on August 16 that it will cease derivatives trading in New Zealand to comply with local legislation. This comes only a few months after it received its original operating license in New Zealand.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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