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On Monday, 22 August, the Securities Commission (SC) of Malaysia made a statement about Huobi conducting operations in the country. The SC has put the crypto exchange on the SC’s Investor Alert list. Malaysian financial regulators have claimed that Huobi without any official registration with the SC is operating as a digital asset exchange in the country.
What is the Reason?
The SC explained that it is mandatory for individuals within the country to require its approval for operations involving capital market activities. The operations that aren’t granted such approval are called as unlicensed or unregistered entities. Local authorities advised investors not to invest in such operations.
The SC also pointed out that individuals using such a service are at a risk. Hence, the watchdog will be incapable of legally resolving monetary losses. This kind of statement might not be great for the exchange. To change exchanges is a simple solution, says local investors responding to the tweet.
The Huobi Group in an official statement said compliance is a key ingredient of its business model in every country where it is operating. The statement is given at a time when there are a series of developments lined up for the global exchange.
The group also revealed its plan to expand its presence in the local Malaysian market given that they are in discussions with Malaysian regulatory authorities.
Countries like Australia and the United States, are slowly moving towards expansion. In early August, the Australian regulators agreed to the exchange. Huobi has secured a FinCEN license in the U.S, taking one step closer to offering services to American clients.
Though the exchange is moving in the right direction, there are major obstacles in places such as New Zealand and Thailand. Recently, Huobi’s Thailand affiliate was closed due to its inability to solve systematic issues even after extensions from local regulators.
On August 16, 2022, Huobi announced that it is stopping end derivatives trading due to compliance with local regulations. The news came a few months after it received its initial license to operate in New Zealand.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
