The Securities Commission Malaysia (SC Malaysia) has added Huobi Global to its Investor Alert List along with other entities the regulator says is operating in the country without official registration.
In the notice SC Malaysia issued via Twitter, the regulator stated that Huobi has been operating a digital asset exchange (DAX) without being registered. The regulator also warned investors of the risks of interacting with the exchange, which includes their inability to seek legal redress in case of monetary losses.
“Investors are strongly urged not to invest in any unlicensed or unregistered entities. These illegal activities put investors at risk as the SC’s regulatory authority over them is limited, particularly in the event of any monetary losses or disputes that cannot be resolved by legal means,” SC Malaysia said.
In a statement, Huobi Global said it is already in talks with the regulator concerning its presence in the local market. The Seychelles-based exchange reiterated that compliance is a core pillar of its business.
“We are currently in discussions with Malaysian regulatory authorities regarding our presence in the local Malaysian market. Compliance is a core pillar of our business, and we strive to adhere to this principle,” the statement read.
Certain government factions in Malaysia have been working towards making the country a more digital assets-friendly jurisdiction. Back in March, Bloomberg reported that a proposal was made to recognize digital assets as legal tender by the Ministry for Communications and Multimedia.
However, the proposal has not seen the light of day as others, like the country’s central bank, oppose the proliferation of the digital assets market. The central bank, known as the Bank Negara Malaysia, is alternatively exploring a central bank digital currency.
Huobi recording successes and failures with regulators
Just recently, Huobi exchange announced that it would discontinue all derivatives trading services for its users in New Zealand due to local regulations. The announcement brought the number of jurisdictions the exchange restricts derivatives trading to 13.
Huobi is also banned outright from operating in 11 jurisdictions, with the most recent addition being Thailand, according to the platform’s user agreement page.
Meanwhile, the digital assets exchange has recently registered its business in Australia and Dubai. In Hong Kong, its subsidiary came closer to getting licenses to carry out securities trading and automated trading services.
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