Huobi Charged For Illegally Operating DAX By Malaysian SEC

Crypto News: The Securities Commission Malaysia (SC) on Monday announced that it has charged Huobi Global Limited and its CEO, Leon Li for operating a digital asset exchange (DAX) without registration. The Commission has asked the crypto exchange to disable its website and mobile application in the country.

Also Read: SEC Staff Emails Reveal XRP Failed Howey Test

Huobi To Wind Up Its Operation From Malaysia?

The Malaysian SEC directed the Huobi to halt circulating or publishing any advertisements on social media or emails to its local users. The crypto exchange will now have to disable its application from Apple Store, Google Play, and any other sources.

As per the orders, Huobi CEO will need to ensure that all the directions laid by the Malaysian SEC should be followed properly.

TRON founder, Justin Sun reportedly acquired the Controlling stakes in Huobi for $1 billion, back in November. The transaction was carried out with the help of Hong Kong-based asset manager About Capital. Meanwhile, he has denied owning a majority stake in the crypto exchange.

Also Read: Why Didn’t US SEC Appeal Over Hinman Docs? Is It Looking To Settle?

At the press time, Huobi Token (HT), the native token of Huobi Global price is marginally up by 0.8% in the last 24 hours. HT is trading at an average price of $2.92. However, its 24 hour trading volume is down by 14% to stand at $16.6 million.

The Malaysian SEC stated that this action comes in as concerns about the exchange’s compliance with local regulatory requirements. In the view of the commission, the exchange was operating a DAX without obtaining registration as a Recognised Market Operator (RMO). This breach is in offence under the Capital Markets and Services Act 2007.

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Ashish Kumar

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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