Malaysian authorities put Huobi exchange on Investor Alert List

The Malaysian Securities Commission said that Huobi exchange is operating without official registration from local regulators.

Malaysia's Securities Commission (SC) released a statement earlier this week, regarding Huobi's activities Accordingly, the exchange is currently on the SC Investor Alert List. Malaysian financial regulators said that Huobi operated a crypto trading platform in the country without official registration. with SC.

Huobi Global [https://t.co/la9Y3ntGuq] has been added to the SC's Investor Alert List for operating a digital asset exchange (DAX) in Malaysia without being registered with the SC. pic.twitter.com/z3IGgnCa0t

— SC Malaysia (@SecComMY) August 22, 2022

SC said that any activity carrying out or providing capital market operations in the country is required approved by this agency. Unapproved companies are considered unlicensed or unregistered organizations. As a result, they can take strict measures against violators.

However, facing the above situation, Huobi affirmed that regulatory compliance is a core pillar of their business model in all operating countries:

“We are currently discussions with Malaysian regulators regarding the presence of the exchange in this market.”

The Malaysian government's warning against Huobi comes in the context that the exchange is facing many other legal difficulties in a number of similar countries, such as Thailand and New Zealand.

Not only that, Huobi's business has also declined significantly in the past year, since the exchange had to accept to leave the Chinese market after the widespread crackdown on cryptocurrencies in the country. this. Recently, the case of HUSD suddenly depeg, becoming a stablecoin developed by the exchange for the first time in the history of the crypto industry, has encountered such a case, causing the community to worry about the current status of Huobi.

For the same reason mentioned, last week, there was "shocking" information that the founder of Huobi exchange was about to sell most of the company's shares at a valuation of $ 3 billion, "giving the opportunity" to take over. to revive the trading floor for many prominent names in the industry today, including CEO of FTX Sam Bankman-Fried or founder of Tron Justin Sun accepted to sit at the negotiating table.

Crypto Fox News summary

Aug 23, 2022