The SC's playbook for unregistered exchanges now has a second chapter, and it reads exactly like the first.
The Securities Commission today publicly reprimanded Huobi Global Limited for operating a Digital Asset Exchange without registration as a Recognised Market Operator — an offence under the Capital Markets and Services Act 2007. Huobi had been on the SC's Investor Alert List since August 2022.
The orders
Huobi must:
- cease all operations in Malaysia;
- disable its website and mobile apps on the Apple App Store, Google Play and Huawei AppGallery; and
- stop all advertising directed at Malaysian investors.
CEO Leon Li is held personally responsible for ensuring compliance — the same personal-accountability approach the SC used against Binance's CZ in July 2021. Malaysian users have been urged to stop trading, withdraw their funds and close their accounts.
The pattern
Alert list first, enforcement later, CEO named always. Two years in, the SC's approach to offshore platforms is consistent enough to be predictable — which is rather the point. For platforms weighing the Malaysian market, the options remain what they were: register, partner with someone who has, or leave.
References
- Securities Commission Malaysia — "SC Takes Enforcement Action Against Huobi Global for Illegally Operating DAX in Malaysia" (22 May 2023)
- CoinDesk — "Malaysia says crypto exchange Huobi Global isn't registered, must cease operations" (22 May 2023)
- Cointelegraph — "Huobi Global stops operations in Malaysia" (May 2023)