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The Malaysian securities regulator announced on May 22 that the crypto exchange Huobi Global Limited and its CEO Leon Li have been reprimanded for operating in the Asian country illegally. The regulator also revealed that the crypto exchange has been told to stop soliciting investments via emails and social media platforms.

Crypto Exchange Told to Disable Its Website

The Securities Commission Malaysia (SC) said on May 22 that it had “issued a public reprimand against Huobi Global Limited, and [CEO] Leon Li for operating illegally in Malaysia.” In addition to the public censure, the Malaysian securities regulator also ordered the crypto exchange platform to stop operating in the country.

According to the regulator, Huobi must “disable its website and mobile application on several platforms such as Apple Store or Google Play.” Besides ordering the crypto exchange to stop inviting investors to its platform, the statement released by the regulator said the crypto exchange should also stop soliciting investments via emails or social media platforms.

In the statement, the Malaysian regulator said the decision to bar Huobi Global was made after it noted the crypto platform’s compliance failures.

“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests. The SC views this breach seriously, as operating a DAX [digital asset exchange] without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offence under Section 7(1) of the Capital Markets and Services Act 2007,” the Securities Commission Malaysia said in the statement.

The Malaysian regulator also warned users of Huobi to “immediately cease trading through its platform, withdraw all their investments, and close their accounts.”

Meanwhile, the SC statement also advised Malaysian investors to deal with RMOs as these have “undergone strict regulatory scrutiny” and “are required to adhere” to guidelines that protect users. On the other hand, the securities regulator said those investing in unlicensed entities “may not be protected under Malaysian securities laws.”