Malaysia: Regulator Adds Huobi Global to Investor Alert List for Unregistered Businesses

Securities Commission Malaysia (SC Malaysia) has added Huobi Global to its investor alert list along with other entities that regulators say operate in the country but are not officially registered. In a notice issued by SC Malaysia via Twitter, the regulator said that Huobi had been operating an unregistered digital asset exchange (DAX). The regulator also warned investors of the risks of interacting with exchanges, including the inability to seek legal redress in the event of monetary losses. “Investors are strongly urged not to invest in any unlicensed or unregistered entities. These illegal activities put investors at risk as the SC has limited regulatory authority over them, especially in any settlement of monetary losses or disputes,” SC Malaysia said. Huobi Global said in a statement that it has held talks with regulators about its presence in the local market. The Seychelles-based exchange reiterated that compliance is a core pillar of its business. “We are currently discussing our presence in the local Malaysian market with Malaysian regulators. Compliance is a core pillar of our business and we strive to uphold this principle,” the statement read. Certain factions of government in Malaysia have been working to make the country a more digital asset-friendly jurisdiction. Back in March, Bloomberg reported that the Ministry of Communications and Multimedia had put forward a proposal to recognize digital assets as legal tender. However, the proposal has not been made public as others such as the country’s central bank oppose the proliferation of digital asset markets. The central bank known as Bank Negara Malaysia is exploring a central bank digital currency. Huobi and regulators record success and failure Just recently, Huobi The exchange has announced that it will cease all derivatives trading services for its New Zealand users due to local regulations. The announcement increases the number of jurisdictions where exchanges restrict derivatives trading to 13. Huobi was also outright banned from operating in 11 jurisdictions, the most recent addition being Thailand, according to the platform’s user agreement page. Meanwhile, digital asset exchanges have recently registered operations in Australia and Dubai. In Hong Kong, its subsidiary is closer to being licensed to carry out securities trading and automated trading services. WATCH: BSV Global Blockchain Conference Panel, Blockchain in the Middle East and South Asia New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners
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