Huobi Global’s Operation Shutdown in Malaysia: What You Need to Know

The Order is In: Huobi Global Must Pack Up

On May 22, the Securities Commission Malaysia (SCM) made a significant move by ordering Huobi Global to terminate its operations in the country. According to their official statement, Huobi failed to register as a legitimate cryptocurrency exchange operator within Malaysia. As a result, the company is under strict orders to shut down all activities, which includes disabling its website and mobile applications from platforms like Apple Store and Google Play.

Say Goodbye to Your Crypto Dreams (for now)

In a stunning twist of fate, Huobi users in Malaysia find themselves in a bit of a pickle. The SCM has instructed all Malaysian investors to halt trading, withdraw their funds, and, quite literally, close the book on their accounts. Advertising? Think again. Huobi is now banned from promoting any of its offerings to users in Malaysia, whether through social media or emails.

The Backstory: A Regulatory Wrinkle

The enforcement action comes as part of Malaysia’s larger fight to regulate cryptocurrency practices within its borders. SCM’s concerns centered on Huobi’s failure to comply with local regulatory requirements. Also, let’s not forget that this is not the first time Huobi has found itself in hot water with Malaysian authorities. Back in August 2022, SCM issued an investor alert about Huobi operating without permissions.

Huobi’s Defense: Not Us, But the Previous Owners!

In a dramatic response to the news, a spokesperson from Huobi emphasized that the current entity is distinctly separate from its previous version. They clarified that the enforcement order pertains to a previous organizational setup and its former shareholders instead of the currently operating platform that prides itself on global regulatory compliance.

What’s Next for Huobi in Malaysia?

In the realm of cryptocurrency, the absence of operational licenses often leads to regrettable exits. However, this isn’t the first rodeo for Huobi in Malaysia. Back in 2020, they launched Huobi Labuan, which operated under a temporary license. In contrast, Binance managed to dodge this bullet by acquiring a stake in the licensed trading platform MX Global after facing similar regulatory hurdles. Currently, only four companies hold recognition as registered cryptocurrency exchange operators in Malaysia, including Luno Malaysia and Tokenize Technology, leaving Huobi out in the cold. Will Huobi manage to find its way back in compliant fashion? Only time will tell!