Malaysian regulators add Huobi to investor Alert List , is this danger for HUOBI ?

The Securities Commission of Malaysian (SC) released a statement on Huobi operations in the country. According to the statement, the crypto exchange is now on SC’s Investor Alert List. Malaysian financial regulators say Huobi operates a digital asset exchange in the country without formal registration with SC.

Huobi Global [https://t.co/la9Y3ntGuq]

has been added to the SC’s Investor Alert List for operating a digital asset exchange (DAX) in Malaysia without being registered with the SC. pic.twitter.com/z3IGgnCa0t

— SC Malaysia (@SecComMY) August 22, 2022
Law and Crypto

In a follow-up tweet, SC said that any transaction that performs or offers capital markets activities within the country requires its approval. Those who are not given this approval are considered unlicensed or unregistered organisations. In addition, SC stressed that anyone using such a service is at risk. Such a statement does not bode well for trading. Local investors responded to the tweet by saying that a simple fix is to switch exchanges. In an official statement to Cointelegraph, Huobi Group responded by stating that compliance is one of the pillars of its business model in every country in which it operates:

We are currently in discussions with Malaysian regulatory authorities regarding our presence in the local Malaysian market. 

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In countries such as Australia and the United States, Huobi is taking steps towards expansion. Australian regulators gave the stock market the green light in early August. It has obtained a FinCEN license in the US, which brings it one step closer to serving American customers.

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While the stock market is taking steps in the right direction in some places, other places such as Thailand and New Zealand are experiencing road bumps. Huobi’s subsidiary in Thailand recently closed after it failed to resolve major systemic issues despite several extensions from local regulators.

In New Zealand, Huobi announced on August 16 that it will terminate its derivatives trading due to compliance with local regulations.

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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