On August 22, the Malaysian Securities Commission (SC) released a statement on Huobi’s operations in the country. The cryptocurrency exchange is currently included on the SC’s Investor Alert List, the statement said.
Financial watchdogs in Malaysia claim that Huobi has been running a digital asset exchange there without being formally registered with the SC.
The SC stated in a subsequent tweet that it must give its approval to any businesses conducting or offering capital market activities domestically. Unlicensed or unregistered entities are those who do not receive such approval. Investors are “strongly warned,” according to local authorities, to steer clear of such ventures.
The SC further emphasised that anyone who uses such a service does so at their own risk and that any financial losses are not subject to judicial recourse.
A statement like that can spell trouble for the exchange. Local investors replied to the tweet by suggesting a straightforward solution: switching exchanges.
The Huobi Group officially stated that they take compliance very seriously when operating in various countries. They said that they “are currently in discussions with Malaysian regulatory authorities regarding our presence in the local Malaysian market.”
Huobi is making moves toward expansion in nations like Australia and the US. Early in August, Australian officials approved the exchange. It obtained a FinCEN licence in the US, taking it one step closer to providing services to American customers.
