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Huobi has hit another roadblock in its regional expansion bid, after Securities Commission Malaysia (SC), the country’s capital markers regulator, placed the Seychelles-headquartered cryptocurrency bourse on its investor alert list for operating a digital asset exchange (DAX) in the country without being registered.
In Malaysia, any parties that carry out capital market activities require the SC’s approval, even if they are approved to operate in other countries.
— SC Malaysia (@SecComMY) August 22, 2022
Investors are strongly urged not to invest in any unlicensed or unregistered entities.
“In Malaysia, any parties that carry out capital market activities require the SC’s approval, even if they are approved to operate in other countries. Investors are strongly urged not to invest in any unlicensed or unregistered entities,” SC said in a tweet on Wednesday.
SC noted that investors who use Huobi are “at risk,” particularly relating to monetary losses or disputes that cannot be resolved by legal means, as its regulatory authority over unlicensed exchanges is limited.
The Malaysian government has a positive outlook concerning cryptocurrencies but regulators there have rolled out few regulations on digital currencies. The three recognized market operators (RMOs) approved by SC for operating in Malaysia are Luno, Tokenize, and Sinegy.
Headquartered in Seychelles, Huobi was founded in 2013, and is among the top crypto spot and derivatives exchanges globally. Two months ago, it announced that it was shutting down its Thai platform, less than two years since its launch, after its license was revoked by the country’s crypto watchdog.
It was previously on an international expansion bid, and acquired Bitex, a crypto platform that built the first Bitcoin exchange in Latin America.
