The Securities Commission Malaysia (SC) has issued a public reprimanding against Huobi Global Limited and its chief executive officer Leon Li for operating a digital asset exchange (DAX) in Malaysia without registration.

In addition, the SC Malaysia also ordered Huobi Global to cease its operations in Malaysia and shut down Huobi's website and mobile app on multiple platforms including Apple Store, Google Play and other digital applications.

Hubialso is prohibited from disseminating, publishing or pushing any advertising to Malaysian investors in any way, including via email or promotion on social platforms. Mr Li, as chief executive, was specifically ordered to ensure that the directive was carried out.

The SC Malaysia made this decision due to its concerns about the platform's ability to ensure compliance with local regulatory requirements and protect investor interests. Under Section 7(1) of the Capital Markets and Services Act 2007, it is an offence to operate a digital asset exchange in Malaysia without obtaining a Recognised Market Operator (RMO) licence from the SC.

SC Malaysia has been urging Huobi's Malaysian investors to immediately stop trading through the platform, withdraw all investments and close their Huobi accounts.

The regulator strongly recommends that investors invest through RMOs that are registered and authorized by the SC. Registered RMOs have undergone rigorous regulatory scrutiny and adhere to strict guidelines so that investors receive the protection of Malaysian securities laws. Those unlicensed or registered entities or individuals investing in operators are at risk of fraud and may not be protected by Malaysian securities laws.

SC Malaysia reminds investors to exercise caution when choosing a platform and do due diligence before making any investment decision. In addition, investors should be wary of investment schemes that promise high returns with low risk. By taking these precautions, investors will be able to effectively protect their investment assets against fraud.