- The exchange has been ordered to wind down operations and block residents’ access to its official website and app
- The company is accused of violating the Capital Markets Act
- Allegedly Huobi was operating in the local market without a proper license
The Securities and Exchange Commission of Malaysia (SC) has filed charges against Huobi Global Ltd.. and its CVO.
The company is charged with operating a virtual asset trading platform (DAX) without the appropriate license.
The regulator’s order was published on its official website on May 22.
Huobi is ordered to completely suspend operations in the local market, as well as closing residents’ access to its portal and mobile app.
In addition, the exchange is prohibited from promoting services and products to investors from Malaysia through social networks and mailings to emails.
The company’s executive director, Leon Lee, has been instructed to follow up on these requirements.
In Malaysia, Huobi violated the Capital Markets and Services Act (2007). This regulation requires digital asset service providers (VASPs) to obtain the appropriate license to manage DAX.
The regulator also “strongly recommended” that investors only deal with companies that do receive official status.
The Commission’s decision has not yet commented either Huobi, or Justin Sun himself, the head of the company.
Remind that earlier he announced the integration of tokens based on the BRC-20 standard in the trading platforms of Huobi and Poloniex.
With the help of meme-coins he wants to “revive” stock exchanges.