According to the Securities Commission of Malaysia, Huobi operates without registration from local regulators.
Monday’s statement by the Securities Commission (SC), Malaysia, regarding Huobi’s operations within the country was issued. The statement stated that the SC has placed Huobi’s crypto exchange on its Investor Alert List.
Malaysian financial regulators claim that Huobi is operating a digital asset swap in Malaysia without being registered with the SC.
The SC stated in a follow-up tweet that all operations that engage in capital market activities within the country must be approved by it. Unlicensed or unregistered entities are those who don’t have such approval. Local authorities advise investors not to invest in these operations.
The SC also pointed out that anyone using such a service is at risk and would not legally be able to resolve any monetary losses.
This is not a good sign for the exchange. Local investors replied to the tweet with simple solutions: change exchanges.
The Huobi Group replied to Cointelegraph in an official statement. It stated that compliance is a key pillar of their business model in all countries where it operates:
“We are currently in discussions regarding our presence on the Malaysian market.
This is among a number of developments that will affect the global stock exchange.
Huobi is expanding in countries like Australia and the United States. The exchange was approved by Australian regulators in August. Huobi in the United States has obtained a FinCEN licence. This allows it to offer services to American clients.
The exchange is moving in the right direction in certain places, but there are still roadblocks in other countries, such as New Zealand and Thailand. Huobi’s Thailand branch was recently closed down by the exchange because it couldn’t fix major systemic issues despite numerous extensions from local regulators.
Huobi, a New Zealand company, announced that it would cease derivatives trading in accordance with local regulations. This announcement comes just a few months following ‘s initial license to operate here in New Zealand.