Malaysia’s securities regulator, the Securities Commission Malaysia (SC), has ordered Huobi Global, a major cryptocurrency exchange, to cease its operations in the country.
The SC said in a statement that Huobi Global had been operating in Malaysia without a license and that its activities were “contrary to the provisions of the Capital Markets and Services Act 2007.”
The SC said that Huobi Global had been given a deadline of May 26 to cease its operations in Malaysia. The exchange has not yet commented on the SC’s order.
The SC’s decision to order Huobi Global to cease its operations in Malaysia is a significant development in the country’s cryptocurrency regulatory landscape. Malaysia has been relatively open to the cryptocurrency industry, but the SC has recently taken a more cautious approach.
In March, the SC issued a warning to cryptocurrency exchanges operating in Malaysia, reminding them that they must be licensed to operate in the country. The SC also said that it would be conducting inspections of cryptocurrency exchanges to ensure that they are complying with the law.
The SC’s decision to order Huobi Global to cease its operations in Malaysia is likely to have a chilling effect on the cryptocurrency industry in the country. It is also likely to lead to increased scrutiny of other cryptocurrency exchanges operating in Malaysia.