Malaysian regulators add Huobi to investor alert list
The Securities Commission (SC) of Malaysia issued a statement on Monday regarding Huobi's operations in the country. According to the statement, the crypto exchange is now on the SC’s Investor Alert List.
Malaysian financial regulators say Huobi has been operating a digital asset exchange in the country without official registration with the SC.
Huobi Global [https://t.co/la9Y3ntGuq] has been added to the SC’s Investor Alert List for operating a digital asset exchange (DAX) in Malaysia without being registered with the SC. pic.twitter.com/z3IGgnCa0t
In a follow-up tweet, the SC said that any operations that perform or offer capital market activities within the country require its approval. Those who aren’t granted such approval are considered unlicensed or unregistered entities. Local authorities say investors are “strongly urged” not to invest in such operations.
Additionally, the SC highlighted that anyone who does utilize such a service does so at a risk and would not be able to legally resolve monetary losses.
Such a statement does not bode well for the exchange. Local investors responded to the tweet by saying a simple fix is to change exchanges.
In an official statement, the Huobi Group responded to Cointelegraph, stating that compliance is a core pillar of its business model in every country of its operations:
This comes amid an array of developments for the global exchange.
In countries such as Australia and the United States, Huobi is taking steps toward expansion. Australian regulators greenlit the exchange in early August. In the United States, Huobi has secured a FinCEN license, which brings it one step closer to offering services to American clients.
Related: Huobi co-founder reportedly looks to sell majority stake
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