Malaysia’s Securities Commission (SC) has recently ordered Huobi Global to halt its operations in the country, including disabling its website and mobile applications. This decision was made because Huobi Global has been found to be operating a digital asset exchange without proper registration with the commission.
According to a recent announcement made on Monday, the commission has required Huobi Global to immediately stop circulating, publishing, or sending any advertisements to investors in Malaysia. This action comes as an enforcement of the country’s Capital Markets and Services Act, which prohibits the operation of a digital asset exchange without registering as a Recognised Market Operator with the SC.
As a result of this enforcement, Huobi Global’s CEO, Leon Li, has been directed to ensure that all directives issued by the commission are carried out. The SC has also advised all Malaysian investors who are currently trading on Huobi Global’s platform to withdraw their funds, close their accounts, and cease all trading activities on the platform until further notice.
The SC’s decision to halt Huobi Global’s operations has raised concerns within the digital asset community. While some believe it is a necessary step to ensure compliance with the country’s regulatory framework, others argue that it may hinder the growth of the digital asset industry in Malaysia.
One of the primary concerns raised by industry analysts is the impact this enforcement will have on the growth of the digital asset market in Malaysia. According to reports, the country’s digital asset market has been growing rapidly in recent years, with more investors entering the market and more companies looking to establish themselves in the country.
With the commission’s decision to halt Huobi Global’s operations, some worry that this growth could be stifled, as other companies may be deterred from entering the market due to the regulatory framework and the perceived risk associated with operating in the country.
However, others argue that this decision is necessary to ensure that all digital asset exchanges operating in the country are following the proper regulatory framework. This, in turn, could help to build investor trust and confidence in the digital asset market, which may ultimately lead to increased growth.
In addition to its decision to halt Huobi Global’s operations, the SC has also taken steps to strengthen its regulatory framework for the digital asset market. Last year, the commission introduced new guidelines for initial coin offerings (ICOs), with the aim of protecting investors and ensuring compliance with existing securities laws.
More recently, the commission introduced new guidelines for digital asset custodians, which require these entities to meet certain standards to ensure the safekeeping of investors’ digital assets.
These measures indicate that the commission is taking a proactive approach to regulating the digital asset market in Malaysia. While some may view this as a hindrance to growth, others see it as a necessary step to ensure the long-term sustainability of the digital asset market in the country.
Despite the concerns raised by the commission’s decision, it is important to recognize that proper regulation is essential to ensuring the long-term viability of any market. Digital asset exchanges that do not follow the proper regulatory framework pose a risk to investors and can ultimately undermine the growth and success of the market as a whole.
As such, it is important that companies operating in the digital asset market in Malaysia take steps to ensure compliance with existing regulatory requirements. This includes obtaining the necessary registration and licenses from the SC, as well as following the regulatory guidelines set out by the commission.
In conclusion, the SC’s decision to halt Huobi Global’s operations in Malaysia has raised concerns within the digital asset community. However, it is important to recognize that proper regulation is essential to ensuring the long-term viability of any market. By strengthening its regulatory framework for the digital asset market, the commission is taking a proactive approach to ensuring compliance and protecting the interests of investors. While this may pose some challenges to companies operating in the market, it ultimately serves to build investor trust and confidence, which can lead to increased growth and success in the long-term.