May 23, 2023

Huobi Global Ordered to Close Malaysian Operations

Huobi Global, a cryptocurrency exchange, has been ordered to terminate its operations in Malaysia following an enforcement action from the country’s securities regulator, the Securities Commission Malaysia (SCM).

The SCM released an official statement on May 22nd, stating that Huobi Global had failed to register as a cryptocurrency exchange operator and must immediately stop all activity. The company has been directed to disable its website and mobile applications on Apple Store and Google Play. Additionally, the exchange must cease advertising its products and services to Malaysian users via email and social media.

The SCM’s decision was driven by concerns about Huobi’s compliance with local regulatory requirements. As such, the regulator has also directed Malaysian investors to stop trading on the platform, withdraw funds and close their accounts.

Huobi Global underwent a rebranding in November 2022 following its acquisition by About Capital Buyout Fund the previous month. In response to the SCM’s enforcement action, a company spokesperson told Cointelegraph that the order does not pertain to Huobi that continues to operate following last year’s change in ownership.

Huobi Global had been in the crosshairs of the Malaysian securities regulator since August 2022, after the SCM issued an investor alert. This alert stated that the exchange was operating without the necessary permissions in the country.

In response, Huobi indicated that it was in discussions with Malaysian regulators about its regional operations. The company initially launched a brokerage firm called Huobi Labuan in November 2020 with a temporary nine-month period to offer cryptocurrency spot and derivatives trading.

In 2022, cryptocurrency exchange Binance managed to secure a foothold in the Malaysian market by acquiring a stake in regulated trading platform MX Global. Binance had found itself in a similar situation to Huobi midway through 2021, being ordered to cease operations in the region for not having the necessary regulatory approval.

According to the SCM website, only four companies are registered as recognized cryptocurrency exchange operators in Malaysia. These include Luno Malaysia, MX Global, Sinegy and Tokenize Technology. The list was last updated in August 2022.

The news of Huobi Global terminating its operations in Malaysia comes at a time when Non-Fungible Tokens (NFTs) are gaining traction in the crypto and web3 space. NFTs are digital assets that are unique and are used for a variety of purposes, such as digital art, collectibles, and gaming. With the increasing popularity of NFTs, many companies are looking for ways to promote and market them.

Twitter has become one of the most popular platforms for NFT marketing. Companies have taken to Twitter to promote their NFTs and engage with potential buyers. However, with the increasing demand for NFT marketing, there has been a rise in the number of NFT marketing agencies. These agencies specialize in helping companies to promote their NFTs and sell them to potential buyers.

Huobi Global had planned to use its platform to help companies promote and sell their NFTs, but now that the company has been ordered to terminate its operations in Malaysia, these plans have been put on hold. However, there are still a number of other web3 agencies and platforms that companies can use to promote and sell their NFTs.

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