The regulator issued a warning that Huobi Global and its CEO Leon Li are operating illegally in Malaysia.
The agency demanded the crypto-exchange to stop operating in the country, as well as to disable its website and mobile application on the Apple Store, Google Play and other platforms for Malaysian citizens.
Huobi Global is also required to stop advertising its services to local investors, whether through social media promotion or email newsletters.
Commission fears that cryptocurrency exchanges’ noncompliance with local regulations violates investors’ interests.
Operating without registering with SC as an authorized market operator (RMO) is considered a violation of the Capital Markets and Services Act of 2007, the agency stressed.
SC called on Malaysian investors who used Huobi Global to immediately stop trading on the platform, withdraw all their funds from it and delete their accounts.
SC recommended traders to trade only on registered platforms, which have passed strict inspection by regulators and comply with the securities laws of Malaysia.
The agency warned: those who work with unlicensed or unregistered platforms expose themselves to serious risks of fraud and loss of funds.
Last year, Malaysia’s Ministry of Communication and Multimedia (KKMM) proposed that local authorities legalize certain uses of crypto-assets.
However, Malaysian Deputy Finance Minister Yamani Hafez Musa believes that digital assets are not suitable for payments, settlements and savings.