The agency monitoring securities exchanges in the Malaysian Securities Commission (SC) recently claimed Huobi’s activities in the country are illegal. The giant digital asset exchange operates without registering with the local authority.
Malaysian Securities Commission Accused Huobi Exchange
On Monday, Malaysia’s Securities Commission released an official announcement concerning the Huobi exchange on its official page. As per the tweet, the regulator stated that the exchange is now on its Investor Alert board.
The Malaysian government’s official claimed that Huobi has been offering digital assets to its citizens illegally as it refused to register with the firm. The financial regulators further tweeted that any firm that provides capital market services within Malaysia must officially register with SC.
It continued that any firm operating within the country without license or approval from the SC is operating illegally. Afterward, the regulator further urged institutional investors to avoid illegal operations and to ensure they had permission from SC.
Furthermore, the SC warned that any investor who patronizes exchanges that operate illegally does that at risk. Additionally, it said if there is any monetary loss, government agencies will not get involved in the case.
Huobi Is Working On Its Operation Approval From SC
The news met adverse reactions from many Malaysian investors who commented on the tweet. Some suggested they would fix the situation by moving their assets from Huobi to other legally registered exchanges.
Responding to the allegation, Huobi issued an official statement in its recent interview with a local news source. It claims that it knows the importance of having legal approval to operate in any region.
Hence, it has always been a habit to ensure it properly registers its operations with local authorities. In addition, the Huobi group revealed that it is currently discussing how to legalize its operations in Malaysia with the regulators.
Huobi Group Aimed At Expanding Its Services Across The World
Recently, the Huobi exchange has been taking giant steps toward achieving its global expansion goal. In August, Huobi got approval to operate in Australia.
Furthermore, the exchange currently secured a license from the FinCEN agency in America. The permit has brought Huobi closer to its goal of providing digital assets services to users in America.
However, the effort of the exchange to establish itself in some regions like Thailand has proved abortive. A few weeks back, Huobi closed down its Thailand branch after failing to resolve some critical technical issues it faced.
Similarly, New Zealand has ordered Huobi to stop providing crypto derivatives products to investors in its region. The exchange revealed this a few months after the country granted its license to operate in its area.